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Version 3 MOR Guidance Notes – CONSULTATION DRAFT 1

Model Operating Requirements

- Guidance Notes -

CONSULTATION DRAFT

Version 3

Date of Issue: January 2015


CONTENTS

Changes made to the previous version of this document ...…………………………………………….6

PART A – EXPLANATORY MATERIAL

Status of these Notes ................................................................................................................... 8

About the Notes ............................................................................................................................ 8

Scope of the Notes ....................................................................................................................... 9

Terms used in the Notes ............................................................................................................ 10

Standards Referenced in the Notes ........................................................................................... 12

Registrar’s role in determining Operating Requirements ........................................................ 13

Registrar’s role in approving you to operate ............................................................................ 14

Registrar’s role in determining your compliance ..................................................................... 15

Registrar’s general approach to assessing compliance .......................................................... 16

How you can demonstrate compliance ..................................................................................... 17

What is a Specified Document? ................................................................................................. 18

What is a Self-Certification? ....................................................................................................... 18

What is a No-Change Certification? .......................................................................................... 19

What is an Independent Certification? ...................................................................................... 19

What is your Annual Report to the Registrar? .......................................................................... 21

What is your Monthly Report? ................................................................................................... 21

Registrar’s Compliance Examination powers under the ECNL ............................................... 22

How you can obtain Approval as an ELNO ............................................................................... 22

What you have to do before you can begin operating ............................................................. 23

Your Approval as an ELNO ........................................................................................................ 24

Applications for Approval and renewal of Approval as an ELNO ............................................ 24

PART B – COMPLIANCE GUIDANCE

(Section numbers in this Part refer to Clause numbers in the Operating Requirements)

3 Compliance with Operating Requirements .................................................................. 27

4 Eligibility Criteria ........................................................................................................... 30

4.1 ABN ................................................................................................................................ 30

4.2 Status ............................................................................................................................. 31

4.3 Character ....................................................................................................................... 32

4.3.1 Character and Reputation ............................................................................................. 32

4.3.2 Governance ................................................................................................................... 34

4.4 Financial Resources ..................................................................................................... 36

4.5 Technical Resources .................................................................................................... 38


4.6 Organisational Resources ............................................................................................ 40

4.7 Insurance ....................................................................................................................... 42

5 Operation of ELN ........................................................................................................... 45

5.1 Encourage Widespread Industry Use .......................................................................... 45

5.2 National System and Minimum Document Capability................................................. 47

5.3 General Obligations ...................................................................................................... 48

5.3(a) Operating in a proper manner ...................................................................................... 48

5.3(b) Due care, skill and diligence ........................................................................................ 49

5.3(c) Disruption and interference .......................................................................................... 50

5.3(d) Licences and regulatory approvals ............................................................................. 51

5.3(e) Pricing Policy ................................................................................................................ 53

5.3(f) Training and awareness programs .............................................................................. 55

5.3(g) Applicable laws and policies ........................................................................................ 57

5.3(h) Confidentiality of information ....................................................................................... 59

5.3(i) Reasonable directions .................................................................................................. 60

5.3(j) Notifiable events ........................................................................................................... 61

5.3(k) Assistance to the Registrar .......................................................................................... 62

6 Initial Testing ................................................................................................................. 63

7 Obligations Regarding System Security and Integrity ............................................... 65

7.1 Information Security Management System ................................................................. 65

7.2 Access to ELN ............................................................................................................... 71

7.3 Security of ELN ............................................................................................................. 73

7.4 Data ................................................................................................................................ 74

7.5 Protection of Land Information .................................................................................... 75

7.6 Digital Certificate Regime ............................................................................................. 76

7.7 Verifying Digital Signing ............................................................................................... 77

7.8 Verifying No Alteration.................................................................................................. 78

7.9 Notification of Jeopardised Conveyancing Transactions .......................................... 79

7.10 Obligations in relation to Notification of Compromised Security .............................. 80

8 Security and Integrity of Titles Register ...................................................................... 81

9 Risk Management .......................................................................................................... 83

9.1 Mitigate Risk .................................................................................................................. 83

9.2 No Increased Risk of Fraud or Error ............................................................................ 86

10 Minimum System Requirements .................................................................................. 88

10.1 Functionality .................................................................................................................. 89

10.1(a) Functionality for Subscribers and the Registrar ........................................................ 89

10.1(b) ELN Design and Provisioning ...................................................................................... 90

10.2 (Deleted)


10.3 Data Standard ............................................................................................................... 92

10.4 Apply Registrar’s Business Rules ............................................................................... 93

10.5 Services to Enable Assessment of Integrity ............................................................... 94

10.6 Ability to Unsign Digitally Signed Documents ............................................................ 95

10.7 Document Templates .................................................................................................... 96

10.8 Presentation Following Completion of Financial Settlement ..................................... 97

10.9 Presentation Following Duty Payment or Commitment ............................................. 98

10.10 Land Registry Fees ....................................................................................................... 99

11 Minimum Performance Levels .................................................................................... 100

12 Business Continuity and Disaster Recovery Management ...................................... 105

12.1 Business Continuity and Disaster Recovery Management Program ....................... 105

12.2 Review .......................................................................................................................... 108

13 Change Management .................................................................................................. 109

13.1 Change Management Framework .............................................................................. 109

13.2 No Changes other than in accordance with Change Management Framework ...... 113

14 Subscribers ................................................................................................................. 114

14.1 Subscriber Registration .............................................................................................. 114

14.2 Unreasonable Barriers or Refusal to Accept Subscriber ......................................... 118

14.3 Maintain Subscriber and User Register ..................................................................... 120

14.4 Evidence of Subscriber Insurance and Verification of Identity ................................ 121

14.5 Participation Agreement and Participation Rules ..................................................... 122

14.6 Training ........................................................................................................................ 123

14.7 Monitoring of Subscribers and Suspension or Termination .................................... 125

14.8 ELNO must Restrict, Suspend or Terminate Subscriber if Directed by Registrar .. 126

14.9 Consequences of Restriction, Suspension or Termination ..................................... 127

15 Compliance Monitoring and Reporting ...................................................................... 128

15.1 Monitor Compliance .................................................................................................... 128

15.2 Demonstrate Compliance ........................................................................................... 130

15.3 Inability to give a No-Change Certification ................................................................ 132

15.4 When to Demonstrate Compliance ............................................................................ 133

15.5 Demonstrate Compliance at any Time ....................................................................... 134

15.6 Provision of Further Information ................................................................................ 135

15.7 Notice of Non-Compliance and Remedy .................................................................... 136

15.8 Remediation of Non Compliance ............................................................................... 138

15.9 Remediation of Serious Non Compliance.................................................................. 139

15.10 ELNO may provide certified copies of original documents...................................... 140

16 Independent Certification ........................................................................................... 141

16.1 Approval of Independent Expert ................................................................................ 141


16.2 Assistance ................................................................................................................... 142

16.3 Essential and Desirable Recommendations .............................................................. 143

16.4 Inclusion of Essential Recommendations in Independent Expert’s Certification .. 144

17 Compliance Examination ............................................................................................ 145

18 Reports ........................................................................................................................ 146

18.1 Monthly Report ............................................................................................................ 146

18.2 Annual Report to the Registrar .................................................................................. 148

19 Data and Information Obligations .............................................................................. 150

19.1 Retention ..................................................................................................................... 150

19.2 Generation and Retention of Transaction Audit Records ........................................ 152

19.3 Use of Land Information ............................................................................................. 154

19.4 Provide Information to Subscribers ........................................................................... 156

19.5 Intellectual Property Rights ........................................................................................ 157

20 Registrar’s Powers ...................................................................................................... 158

20.1 Suspension or Revocation of ELNO’s Approval ....................................................... 158

21 Business and Services Transition ............................................................................. 159

21.1 Transition Plan ............................................................................................................ 159

21.2 Minimum Requirements of a Transition Plan ............................................................ 161

21.3 (Deleted)

21.4 Implementation of Transition Plan ............................................................................. 163

22 Amendment of Operating Requirements ................................................................... 165

23 Additional Operating Requirements .......................................................................... 166


Amendments made to the previous version of this document

These are the material amendments made to Version 2 of this document published in July 2014.

# Part & Section Amendment Made Reason for Amendment 1 A - Terms Used Fit for Purpose definition added.

(Where “fit for purpose” is used in Part B outside the context of an Independent Certification, the expression is to be amended to “suitable for the intended use” to avoid confusion with the newly-defined term.)

To align with definition added to the Operating Requirements.

2 A - Terms Used Suspension Event definition added. (Term is used in Part B – 14.7 Monitoring of Subscribers.)


3 A - Terms Used Termination Event definition added. (Term is used in Part B – 14.7 Monitoring of Subscribers.)


4 A – Standards Referenced

AS8001, AS8015, AS10002 and AS17021 updated.

To align with latest published versions of respective Australian Standards.

5 B – 4.3.1 Character and Reputation

Amended to require no insolvency event in previous 5 years only and to remove adverse mention in a report commissioned by or for any government as a measure of not being of good corporate character and reputation.

To align with amendments made to the Operating Requirements. (The amendment to the Operating Requirements regarding insolvency had been made in Version 2 but not applied to Version 2 of the Guidance Notes.)

6 B – 4.7 Insurance Amended to express the professional indemnity, fidelity and public and product liability insurance covers required as annual aggregates and to remove references to a Self-Certification in each Annual Report of the insurance claims received and expected during the reporting period. As a result, the Compliance Demonstration sub-section has been significantly revised and a sub-section has been added providing guidance on what is expected when reporting an insurance claim having been received or a potential insurance claim event having occurred.

To align with amendments made to the Operating Requirements and to provide additional guidance on reporting insurance claims and events likely to result in insurance claims.

7 B – 11 Minimum Performance Levels

Amended to add a new sub-section titled Interpretation of Performance Level Measures.

To provide enhanced guidance on interpretation for reporting purposes of each of the performance level measures set out in Schedule 2 of the Operating Requirements.

8 B – 14.1 Subscriber Registration

Amended to properly express the requirement that ELNOs are to ensure that Subscribers have their identity verified according to the Standard rather than satisfy the Subscriber Identity Verification Standard.

To align with the Operating Requirements.

9 B – 14.7 Monitoring of Subscribers

Amended to require ELNOs to take action and notify the Registrar when an actual or potential Suspension or Termination Event is detected.

To align with amendment of the Operating Requirements.

10 B – 15.5 Compliance Demonstration

Amended to provide additional guidance on what is meant by “documented substantiation” and in particular to avoid the interpretation that a written assertion of compliance is sufficient.

To clarify what is meant by documented substantiation.


# Part & Section Amendment Made Reason for Amendment

11 B – 21.4 Implementation of Transition Plan

Amended to require immediate implementation of Transition Plan on revocation of ELNO approval only, rather than on suspension or revocation of approval.

To align with amendment of the Operating Requirements.


PART A – EXPLANATORY MATERIAL

Status of these Notes

These Guidance Notes are to assist you in complying with the Operating Requirements. They do

not vary the Operating Requirements or your statutory obligation to comply with them. If there is

any conflict between these Notes and the Operating Requirements, the Operating Requirements

prevail.

The Notes are in two parts. PART A – this Part – consists of explanatory material that will assist

you in understanding the nature and significance of the guidance provided in PART B about your

compliance with individual clauses in the Operating Requirements.

The information contained in these Notes does not constitute, nor should it be treated as, legal

advice. The information is current as at the date of these Notes and is based on the ECNL and its

Operating Requirements as at that date. This version of the Notes is aligned with the Model

Operating Requirements Version 2 published by ARNECC in March 2014.

About the Notes

The Electronic Conveyancing National Law (ECNL), when implemented in a State or Territory of

Australia, empowers the Registrar of Titles or their equivalent authority (Registrar or Land Registry)

in the State or Territory to:

approve you as an Electronic Lodgment Network Operator (ELNO), and

determine Operating Requirements relating to your provision and operation of an Electronic

Lodgment Network (ELN).

These Notes are presented from the perspective of your being or contemplating becoming an

ELNO. They outline the role of the Registrar in approving you as an ELNO and in regulating your

operations as an ELNO through determination of the Operating Requirements and assessment of

your compliance with them. They are to be read in conjunction with the Model Operating

Requirements (MOR) published by the Australian Registrars’ National Electronic Conveyancing

Council (ARNECC).

The primary purpose of these Notes is to let you know what the Registrar will be

looking for when assessing your compliance with the Operating Requirements.

These Notes give you practical guidance on how you can comply with your obligations under the

Operating Requirements. In particular, they set out:


the Registrar’s role in determining the Operating Requirements

the Registrar’s role in approving you to provide and operate an ELN

the Registrar’s role in assessing your compliance with the Operating Requirements

how your compliance with the Operating Requirements will be assessed

how you can obtain Approval to be an ELNO.

How your obligations as an ELNO can be complied with is expressed in terms of:

Specified Documents to be produced by you when applying for Approval to be an ELNO,

prior to your commencing operation of your ELN, and monthly and annually thereafter while

you are approved to operate your ELN

Self-Certifications (including No-Change Certifications) to be provided by you of your

compliance with specific obligations in the Operating Requirements

Independent Certifications to be obtained by you from an approved Independent Expert of

your compliance with specific obligations in the Operating Requirements.

The emphasis in these Notes is on:

where a Specified Document is to be produced, the expected content of that document

where a Self-Certification is to be provided, what you are expected to have done to be able

to provide that certification on an informed basis and in good faith

where an Independent Certification is to be obtained, what is expected to have been done by

you and the Independent Expert to provide a justifiable certification.

These Notes may be updated or varied by ARNECC from time to time as necessary in conjunction

with changes to the MOR or separately. Any updates or variations will be made known through

publication and by direct communication with you if you have been approved by the Registrar as

an ELNO to provide and operate an ELN.

Scope of the Notes

The Operating Requirements distinguish between you, your ELN and your ELNO System. You are

the ELNO responsible for the provisioning and operation of your ELN and ELNO System. Your

ELN is considered to be a part of your ELNO System which may also include other aspects of your

operation such as your duty assessment and financial settlement arrangements for use in

conjunction with your ELN in completing conveyancing transactions.


Your ELN is that part of your ELNO System that enables the preparation and lodgment of Registry

instruments and other documents with the land registry in each jurisdiction.

These Notes distinguish, where necessary, the scope of each of your obligations under the

Operating Requirements.

Terms used in the Notes

Capitalised terms used in these Notes have the meanings referenced or set out here.

AASB means the Australian Accounting Standards Board

ABN has the meaning given to it in the Operating Requirements

Access Credential has the meaning given to it in the Operating Requirements

Annual Report to the Registrar has the meaning given to it in the Operating Requirements

Approval has the meaning given to it in the Operating Requirements

APRA means the Australian Prudential Regulation Authority

ASIC means the Australian Securities and Investments Commission

Business Continuity and Disaster Recovery Management Program (BCDRMP) has the

meaning given to it in the Operating Requirements

Business Plan means a documented plan setting out how it is intended to achieve widespread

industry use of your ELN and realisable economic efficiencies for your Subscribers

Certificate Policy Specification (CPS) has the meaning given to it in the Operating Requirements

Change Management Framework (CMF) has the meaning given to it in the Operating

Requirements

Change Management Plan (CMP) means a specific management plan made in accordance with

the CMF

Compliance Examination has the meaning given to it in the ECNL

Compliance Examination Procedure has the meaning given to it in the Operating Requirements

Compliance Program means a program of activity intended to ensure that one or more

requirements in the Operating Requirements are complied with

Compliance Risk Assessment means a Risk Assessment of a Compliance Program to assure

the Program continues to be effective

Desirable Recommendation has the meaning given to it in the Operating Requirements

Digital Certificate has the meaning given to it in the Operating Requirements


Digital Signature has the meaning given to it in the ECNL

Electronic Conveyancing National Law (ECNL) means the law set out in the Appendix to the

Electronic Conveyancing (Adoption of National Law) Act 2012 (NSW) as adopted or implemented

by an Australian State or Territory

Electronic Lodgment Network (ELN) has the meaning given to in the ECNL

Electronic Lodgment Network Operator (ELNO) has the meaning given to in the ECNL

Essential Recommendation has the meaning given to it in the Operating Requirements

Fit for Purpose has the meaning given to it in the Operating Requirements

Gatekeeper has the meaning given to it in the Operating Requirements

GST has the meaning given to it in the Operating Requirements

Incident has the meaning given to it in the Operating Requirements

Independent Certification has the meaning given to it in the Operating Requirements

Independent Expert has the meaning given to it in the Operating Requirements

Information Security Management System (ISMS) has the meaning given to it in the Operating

Requirements

Land Information has the meaning given to it in the Operating Requirements

Land Registry has the meaning given to it in the Operating Requirements

Land Title Reference Verification has the meaning given to it in the Operating Requirements

Lodgment Fees has the meaning given to it in the Operating Requirements

Lodgment Verification has the meaning given to it in the Operating Requirements

Monthly Report has the meaning given to it in the Operating Requirements

No-Change Certification has the meaning given to it in the Operating Requirements

Operating Agreement means an agreement between the Registrar or Land Registry and an

ELNO for the operation of an ELN

Participation Agreement has the meaning given to it in the ECNL

Participation Rules has the meaning given to it in the ECNL

Party has the meaning given to it in the Operating Requirements

Performance Levels has the meaning given to it in the Operating Requirements

Pricing Policy means the set of principles used for determining an ELNO’s fees and charges

Registrar has the meaning given to it in the ECNL


Registry Information Supply has the meaning given to it in the Operating Requirements

Renewal of Approval means the renewal of an Approval

Risk Management Framework (RMF) has the meaning given to it in the Operating Requirements

Risk Assessment has the meaning given to it in the Operating Requirements

Risk Treatment Plan has the meaning given to it in the Operating Requirements

Security Item has the meaning given to it in the Operating Requirements

Self-Certification has the meaning given to it in the Operating Requirements

Signed Document Verification means a process by which relying parties can readily determine

who signed a digitally signed document and that the signed document has not been altered since it

was signed

Specified Document has the meaning given to it in the Operating Requirements

Standard has the meaning given to it in the Operating Requirements

Standards Authority means either or both of Standards Australia Ltd and International

Organisation for Standardisation

Subscriber Registration Process (SRP) has the meaning given to it in the Operating

Requirements

Subscriber Security Policy means a policy issued by you to your users setting out their

obligations in protecting the security of your ELN

Suspension Event has the meaning given to it in the Operating Requirements

Termination Event has the meaning given to it in the Operating Requirements

Test Plan has the meaning given to it in the Operating Requirements

Title Activity Check has the meaning given to it in the Operating Requirements

Titles Register has the meaning given to it in the Operating Requirements

Transaction Audit Records has the meaning given to it in the Operating Requirements

Transition Plan (TP) has the meaning given to it in the Operating Requirements.

Standards Referenced in the Notes

AS8000:2003 Corporate Governance – Good governance principles

AS8001:2008 Corporate Governance – Fraud and corruption control

AS38500:2010 Corporate Governance of information and communication technology


AS27001:2013 Information Technology – Security techniques – Information security management

systems

AS31000:2009 Risk Management – Principles and guidelines

AS3806:2006 Compliance programs

AS5050:2010 Business continuity – Managing disruption-related risks

ISO24762:2008 Information technology – Guidelines for information and communications

technology disaster recovery services

AS10002:2014 Customer satisfaction - guidelines for complaints handling in organizations

ISO17021:2011 Conformity assessment - Requirements for bodies providing audit and certification

of management systems

ISO20000:2011 Information Technology – Service Management

ISO25010:2011 Systems and software engineering – Quality Requirements and Evaluation

OAIC Guide to Information Security: 2013 – Reasonable Steps to Protect Personal Information

ASX Corporate Governance Council’s 2010 Principles and Recommendations for listed public

companies.

References to Australian and International Standards include all parts of the Standard and all

associated Handbooks, Protocols and Codes of Practice published by the respective Standards

Authority.

Registrar’s role in determining Operating Requirements

The ECNL empowers the Registrar to determine requirements relating to your operation of an

ELN. The requirements are called Operating Requirements. As an ELNO you have a statutory

obligation to comply with the Operating Requirements. In addition, you have a contractual

obligation to comply with the Operating Requirements which are incorporated into the Operating

Agreement you enter into with the Registrar prior to commencing the operation of your ELN in each

jurisdiction.

In determining the Operating Requirements under the ECNL, the Registrar must have regard to

any Model Operating Requirements (MOR) developed and published by ARNECC. ARNECC has

developed and published the MOR at http://www.arnecc.gov.au. When adopted by the Registrar in

a jurisdiction entering into an Operating Agreement with you, the MOR becomes the Operating

Requirements under the ECNL referred to throughout these Notes.

The Registrar must ensure that the Operating Requirements, all superseded versions of the

Operating Requirements, and any changes to the Operating Requirements are publicly available.

http://www.arnecc.gov.au/


The Operating Requirements define the essential attributes of the ELN you are to provide for

industry participants to use in lodging electronic conveyancing transactions with the Registrar. It is

expected that your ELN will be:

a trusted environment for users and the community to have confidence in electronic

conveyancing

a suitable environment for producing lodgments that can be readily examined and registered

electronically

an accessible environment for industry participants

a safe environment for user completion of transactions electronically

a responsive environment capable of adapting to market changes and government policy

developments.

an efficient environment that encourages widespread adoption of electronic conveyancing.

The Operating Requirements are necessary to ensure that industry participants, relying parties and

the community have confidence in you as an ELNO approved by the Registrar to provide and

operate an ELN.

The Operating Requirements are complemented by all other relevant regulation where applicable

to the services you offer, such as:

Privacy Law

Taxation Law

Corporations Law

Competition and Consumer Law

Financial Services Regulation Law

Anti-Money Laundering and Counter-Terrorism Financing Law.

The Operating Requirements are also complemented by the Registrar’s provision to you of

business rules and information and transaction assurance services to be applied and made

available by you for assisting your ELN’s users to complete their transactions effectively and

safely.

Registrar’s role in approving you to operate

The ECNL empowers the Registrar to approve a person as an ELNO to provide and operate an

ELN. As an ELNO you have an obligation to provide and operate your ELN:

for the period stated in the Approval

subject to any conditions attached to the Approval, and


in accordance with the Operating Requirements.

Your Approval to provide and operate an ELN in a jurisdiction is issued by the Registrar or

equivalent authority of the jurisdiction by them entering into an Operating Agreement with you.

The ECNL also provides for the renewal of your Approval, and for its revocation or suspension if

necessary.

Registrar’s role in determining your compliance

The ECNL empowers the Registrar or the Registrar’s delegate to conduct Compliance

Examinations of you to:

ascertain whether or not the Operating Requirements are being complied with

investigate any suspected or alleged misconduct with respect to the operation of your ELN.

In addition to the statutory power to conduct a Compliance Examination, the ECNL requires you to

comply with the Operating Requirements at all times and the Operating Requirements themselves

require you to be able to demonstrate your compliance with any aspect of them to the Registrar

within ten (10) business days of a request from the Registrar while you remain approved to

operate.

You have obligations under the Operating Requirements to supply the Registrar with specified

documents and compliance certifications:

when applying for Approval to operate an ELN

prior to your commencing the operation of your ELN

annually thereafter while you remain approved to operate

at any time you are directed to by the Registrar.

You are also required to publish a Monthly Report of the performance of your ELN.

Your compliance certifications are either:

Self-Certifications, including No-Change Certifications, or

Independent Certifications obtained by you from an Independent Expert approved by the

Registrar.

Independent Certifications are accompanied by a report from the Independent Expert that may set

out recommendations for actions you need to take to achieve compliance with the Operating

Requirements.


Assessment of your specified documents and compliance certifications provides the means for the

Registrar to regularly determine your compliance with your obligations under the Operating

Requirements and, if believed necessary, a basis for the Registrar to undertake a Compliance

Examination as provided for in the ECNL.

The Registrar’s role in determining your compliance with the Operating Requirements involves:

assessing your documentation and certifications provided with your application for Approval

or Renewal of Approval to be an ELNO

assessing your documentation and certifications provided prior to your commencing

operation of your ELNO System, including your ELN

approving Independent Experts to provide Independent Certifications, reports and

recommendations

assessing your Annual Report to the Registrar, including the certifications and other

information provided in it

monitoring your published Monthly Reports on the performance of your ELN

requesting your certifications and other demonstrations of compliance when necessary and

assessing the information you provide

undertaking Compliance Examinations when necessary and assessing the information

collected.

The Registrar may undertake a Compliance Examination at any time or engage another person to

undertake the work on his or her behalf.

Registrar’s general approach to assessing compliance

The Registrar’s general approach to assessing your compliance with the Operating Requirements

is based upon:

your producing comprehensive and high-quality documentation in your application for

Approval to be an ELNO and prior to commencing the operation of your ELNO System

The documentation you produce at this time and its assessment by the Registrar prior to

your commencing the operation of your ELNO System will set the standard for your

continuing compliance and reporting while approved as an ELNO.

your regularly demonstrating compliance in general conformance with these Guidance Notes

Your Monthly Reports and your Annual Reports to the Registrar will properly reflect the

standard of operation required of the Operating Requirements and continue the standard of


documentation established prior to commencing operations. It is essential that all Self-

Certifications, including No-Change Certifications and Independent Certifications are backed

up with relevant compliance programs, information, analysis and reports that justify the

certifications given to the Registrar. The mere giving of a certification is not considered

sufficient in any circumstances.

your readily demonstrating specific compliance with the Operating Requirements in response

to a request at any time from the Registrar

the Registrar undertaking a Compliance Examination when warranted in accordance with the

procedure set out in the Operating Requirements.

How you can demonstrate compliance

You can demonstrate your compliance with the Operating Requirements by one or more of the

following:

producing a Specified Document

providing a Self-Certification, including when appropriate, a No-Change Certification

obtaining and providing an Independent Certification

providing an Annual Report to the Registrar

publishing a Monthly Report

responding to a reasonable request from the Registrar to:

(a) produce a Specified Document

(b) justify a Self-Certification or No-Change Certification

(c) obtain an Independent Certification

(d) provide other documented substantiation of your compliance

promptly advising the Registrar whenever:

(a) you have breached the Operating Requirements

(b) you are likely to breach the Operating Requirements

(c) you have had to mitigate an identified risk of breaching the Operating Requirements.

The Compliance Guidance that follows this Explanatory Material sets out:

what you are required to produce or publish when applying for Approval as an ELNO, eight

(8) weeks prior to commencing operations, and monthly and annually thereafter while you

remain approved to operate, to demonstrate your compliance with the Operating

Requirements


what it is expected you will be able to produce, within ten (10) business days of a request

from the Registrar while you remain approved to operate, to substantiate your compliance

with the Operating Requirements.

What is a Specified Document?

A Specified Document is a document that you are to produce to demonstrate your compliance with

a specific obligation in the Operating Requirements.

Specified Documents include but are not limited to your:

Pricing Policy

Test Plan

Participation Agreements

Audited Financial Statements

Insurance Policy Documents and Certificates of Currency

Business Plan

Information Security Management System (ISMS) documentation

Risk Management Framework (RMF) documentation, including your Risk Assessment and

Risk Treatment Plan

Change Management Framework (CMF) documentation

Business Continuity and Disaster Recovery Management Program (BCDRMP)

documentation

Transition Plan (TP)

Subscriber Registration Process (SRP) documentation

Annual Reports to the Registrar

Monthly Reports

Compliance Failure Notifications.

Specified Documents can be produced to the Registrar as either originals or as copies certified as

such by one of your principals, directors or officers.

What is a Self-Certification?

A Self-Certification is a written statement you provide to the Registrar certifying that you have

complied with and continue to comply with a specific obligation of the Operating Requirements.

Each Self-Certification is expected to be supportable by what you have done to enable you to give

the certification, including where appropriate:


documentation reviewed for continuing relevance and appropriateness

compliance programs reviewed and risk-assessed for continuing completeness and

effectiveness

operations reviewed for effective implementation of documented systems and procedures

comparable situations reviewed for measures of contemporary best practice

performance benchmarks assessed for continuing suitability

changes and adjustments made to systems, procedures and compliance programs as a

result of your reviews.

What is a No-Change Certification?

A No-Change Certification is a Self-Certification by you that the circumstances and evidence,

including any prior No-Change Certification that previously demonstrated compliance, have not

materially changed.

Where you are required to produce a Specified Document or give a Self-Certification to

demonstrate compliance, and where there has been no change to the Specified Document or any

event or occurrence which would render the Self-Certification incorrect, incomplete, false or

misleading, you may give a No-Change Certification.

The circumstances in which a No-Change Certification can be given are set out in Schedule 3 of

the Operating Requirements. When a No-Change Certification is not possible, the Specified

Document is to be produced and/or a Self-Certification is to be provided that you remain compliant


What is an Independent Certification?

An Independent Certification is a written statement of opinion from an Independent Expert:

obtained by you at your expense from an Independent Expert approved by the Registrar

signed by the Independent Expert

on the letterhead of the Independent Expert

given by the Independent Expert for the benefit of the Registrar

accompanied by a report and recommendations that have been reviewed with you and your

key affected, relying and co-regulatory parties

certifying that you have complied with, or can readily comply with after adopting certain

recommendations, a specific obligation of the Operating Requirements.

In providing an Independent Certification, the Independent Expert is to comment upon your:


adoption of contemporary best practices (including compliance with relevant Australian and

International Standards) where such practices are readily identifiable, and

use of systems and procedures that are suitable for the intended use.

Where an Independent Expert makes recommendations in conjunction with providing an

Independent Certification, the recommendations are to be expressed as Essential

Recommendations or Desirable Recommendations and you will be expected to promptly

implement any Essential Recommendations upon which the certification depends.

An Independent Expert is an appropriately qualified, competent and insured person contracted to

you for the purpose of providing an Independent Certification. The person is not to be related to, or

in any way associated with, you or a director, officer, employee, agent or other contractor of yours.

The Registrar must approve the appointment of each Independent Expert before they commence

the work necessary to provide their certification. Sufficient information regarding the qualifications

and competence of a proposed Independent Expert is to be provided to the Registrar at least three

(3) months prior to the time at which the Independent Certification must be given to enable the

Registrar to determine the Independent Expert’s suitability to provide the certification.

The qualifications and competence required of an Independent Expert are dependent on the

specific obligation about which the certification is to be given. Independent Experts will be

expected wherever possible to:

hold a recognised conformity certification accreditation such as that of the Joint Accreditation

System of Australia and New Zealand (JAS-ANZ), and/or

be experienced in the application and use of ISO17021:2011, and

be experienced in the nature and context of your specific obligation in the Operating

Requirements for which the certification of your compliance is to be given, including able to

access other similar contexts and industry benchmarks relevant to that obligation.

Each Independent Expert you engage is to be briefed and managed by you. It is expected that you

will contract the Independent Expert to carry out a documented and well-defined scope of works

with specific deliverables that will produce the Independent Certification to your and the Registrar’s

satisfaction. The full cost of the works is to be met by you.

The Registrar may approve the use of an Independent Expert to provide more than one

certification at the same time. The Registrar may also approve the use of an Independent Expert

to provide the same certification at different times.


What is your Annual Report to the Registrar?

Your Annual Report to the Registrar is a written report you prepare and provide to the Registrar.

Its purpose is to demonstrate your compliance with your obligations under the Operating

Requirements during the previous financial year.

Your first Annual Report is to be for the period from your commencing the operation of your ELN to

the end of the financial year in which operations commenced. If that period is three (3) months or

less, your first Annual Report can be provided after your first full financial year of operation.

Each of your Annual Reports is to be provided within three (3) months of the end of the financial

year and is to include an analysis of both your activities and the extent to which you have complied

with each of your obligations under the Operating Requirements during the period. Where an

Independent Expert has included Essential Recommendations in conjunction with an Independent

Certification, your Annual Report is to include a description of the action you have taken, or intend

to take and the timeframe within which the action is intended to be taken, to implement those

Essential Recommendations.

Schedule 3 of the Operating Requirements sets out the Specified Documents, Self-Certifications

(including No-Change Certifications), and Independent Certifications that are to be included in your

Annual Reports.

What is your Monthly Report?

Your Monthly Report is a written report you prepare and publish. It is for the benefit of the

Registrar, your Subscribers and other customers, other industry participants and the general

community. Its purpose is to demonstrate your compliance with your performance obligations

under the Operating Requirements during the previous calendar month.

Your Monthly Report is to be made publicly available within ten (10) business days of the end of

each calendar month and is to address the obligations set out in Category Four of Schedule 3 of

the Operating Requirements, including:

your performance for the month on the service, system and management measures set out

in Schedule 2 of the Operating Requirements, that is:

(a) Service Availability

(b) Service Reliability

(c) System Responsiveness

(d) System Resilience

(e) Incident Resolution

(f) Problem Identification


all of the complaints you received during the month, categorised by the nature of the

complaint, and indicating whether you found them justified, how you resolved them, and

whether or not they remain outstanding

(a) the specific complaints you received during the month about refusal of Subscriber

applications, indicating whether you found them justified, how you resolved them, and

whether or not they remain outstanding

(b) the specific complaints you received during the month about user training, indicating

whether you found them justified, how you resolved them, and whether or not they

remain outstanding.

It is expected that you will make your Monthly Reports readily available and maintain that

availability for at least the preceding 12 months while you remain approved to operate.

Registrar’s Compliance Examination powers under the ECNL

The ECNL provides the Registrar with powers to conduct Compliance Examinations of you and the

operation of your ELN.

The powers enable the Registrar to conduct a Compliance Examination to:

ascertain whether or not the Operating Requirements are being, or have been, complied

with, and/or

investigate any suspected or alleged misconduct with respect to the operation of your ELN.

You are obliged to co-operate with the Registrar in the conduct of such examinations.

The procedures to be followed in conducting a Compliance Examination are set out in Schedule 5

of the Operating Requirements.

The Registrar may appoint a delegate to conduct a Compliance Examination and must provide you

with at least ten (10) business days’ notice of such an examination.

How you can obtain Approval as an ELNO

You must be able to comply with the Operating Requirements at the time of applying for Approval

to be an ELNO.

To obtain Approval to operate an ELN, you must be able to demonstrate your ability to comply with

the Operating Requirements by producing each of the following Specified Documents:

ABN and GST registration


ASIC registration and company search not more than 30 days old

any Foreign Investment Review Board approval required

constituting documents

corporate governance model

audited financial statements for last two years

technical capability description

organisational structure

Business Plan.

These documents are to be accompanied by Self-Certifications of your:

being of good corporate character and reputation

principals, directors and officers being of good character

employees, agents and contractors being of good character

governance arrangements being contemporary best practice

financial, technical and organisational resources being sufficient

holding all necessary licences and regulatory approvals.

If these documents and certifications are satisfactory, on your entering into an Operating

Agreement with the Registrar, you will be granted Approval to operate an ELN.

What you have to do before you can begin operating

The following further Specified Documents are to be provided to the Registrar at least eight (8)

weeks prior to the date you have notified the Registrar that you intend commencing operations for

the first time and at the time of applying for a renewal of your Approval:

insurance policies and certificates of currency

Pricing Policy

Test Plan

Information Security Management System (ISMS) documentation

Risk Management Framework (RMF) documentation, including your Risk Assessment and

Risk Treatment Plan

Business Continuity and Disaster Recovery Management Program (BCDRMP)

documentation

Change Management Framework (CMF) documentation

Subscriber Registration Process (SRP) documentation

Participation Agreements

Transition Plan (TP).


These documents are to be accompanied by:

No-Change Certifications for each of the documents supplied with your application for

Approval

a Self-Certification that satisfactory evidence of each of your Subscribers’ complying with the

insurance requirements in the Participation Rules has been obtained and retained by you

Independent Certifications (including in each instance an approved Independent Expert’s

report and recommendations) of:

(a) your ISMS being Fit for Purpose

(b) your RMF being Fit for Purpose

(c) your BCDRMP being Fit for Purpose

(d) your ELN being soundly designed and provisioned to be reliable, scalable and flexible

and conforming with industry standards for useability and accessibility.

If these documents and certifications are satisfactory, you will be able to commence operations as

an ELNO.

Your Approval as an ELNO

Your Approval to operate an ELN is on the basis of your continuing compliance with:

the Operating Requirements

your Operating Agreement with the Registrar, and

the Specified Documents and Certifications you provided to the Registrar.

Your Approval to operate your ELN is for ten (10) years and is renewable.

Applications for Approval and Renewal of Approval as an ELNO

Applications for Approval and renewal of Approval to operate an ELN are to be made to the

Australian Registrars’ National Electronic Conveyancing Council (ARNECC) at

[email protected].

ARNECC will co-ordinate the Approval of the Registrar in each State and Territory.

mailto:[email protected]


PART B – COMPLIANCE GUIDANCE

The guidance in this Part is generally provided within the following framework:

Requirement

(Your obligation under the Operating Requirements.)

Purpose

(What the requirement is intended to achieve.)

Scope

(The extent of the requirement’s application. Some requirements apply to your ELNO System,

including your ELN, and some requirements apply to your ELN only.)

Compliance

(The Registrar’s expectations of your arrangements to comply with the requirement. Where the

Operating Requirements require arrangements complying with a particular standard, that standard

is referenced as the essential determinant of compliance. Where the Operating Requirements do

not require compliance with a particular standard, one or more standards may be referenced as

guidance in developing complying arrangements.)

Specific Inclusions

(The Registrar’s expectations of any specific matters that will be included in your compliance

arrangements.)

Compliance Demonstration

(How you are required to demonstrate your compliance.)

Immediate Documentation

(What is required of you to demonstrate your compliance with an immediate reporting

requirement.)

Application Documentation

(What is required of you to demonstrate your compliance when applying for Approval to be an

ELNO with the Category One reporting requirements in Schedule 3 of the Operating

Requirements.)


Pre-commencement Documentation

(What is required of you to demonstrate your compliance at least eight (8) weeks prior to

commencing operations with the Category Two reporting requirements in Schedule 3 of the

Operating Requirements.)

Monthly Documentation

(What is required of you to demonstrate your compliance monthly while approved to operate with the

Category Four reporting requirements in Schedule 3 of the Operating Requirements.)

Annual Documentation

(What is required of you to demonstrate your compliance annually while approved to operate with the

Category Three reporting requirements in Schedule 3 of the Operating Requirements.)

Material Change Documentation

(What is required of you, prior to the implementation of a material change to your compliance arrangements,

to demonstrate that after implementation of the change you will continue to be compliant with the Operating

Requirements.)

Section numbers in this Part refer to Clause numbers in the Operating Requirements.

References in this Part to providing documentation and/or certifications to the Registrar prior to

commencing operations are to be taken as meaning provision at least eight (8) weeks prior to a

date previously nominated by you for your commencing operations.

References in this Part to providing documentation and/or certifications to the Registrar annually

while approved to operate are to be taken as meaning inclusion in your Annual Report to the

Registrar.


3 Compliance with Operating Requirements

Requirement

You have an obligation to continuously comply with the Operating Requirements and any

conditions of your Approval to operate while you hold that Approval.

Purpose

The purpose of this requirement is to ensure the proper and timely completion of conveyancing

transactions and their presentation for lodgment with a land registry using your systems.

Scope

This requirement applies to you and to the operation of your ELNO System, including your ELN.

Compliance

You are expected to have in place thoroughly documented and well-understood processes to:

inform your principals, directors, officers, employees agents and contractors of your

obligations under the Operating Requirements and your Approval to operate

establish, maintain, monitor, assess and demonstrate your compliance with the Operating

Requirements and your Approval to operate

reliably and efficiently identify actual and potential breaches of compliance

deal adequately with any detected breaches or potential breaches of compliance

enable you and the Registrar to at any time conclude fairly and reasonably whether you have

complied with your obligations under the Operating Requirements and your Approval to

operate.

Your processes for monitoring, assessing and assuring your compliance are expected to:

be sufficiently independent of your other activities to ensure that they are not improperly

influenced by commercial considerations

be comprehensive, rigorous and regularly undertaken

include specific internal controls on all activities likely to affect your compliance, including

provision to the Registrar when required of documents, reports and certifications

demonstrating your compliance

require you to assess the implications of and to re-assess relevant aspects of your

compliance if there are significant changes to one or more of:


(a) the operation of your ELNO System, including your ELN

(b) the regulation of your Subscribers

(c) the Operating Requirements

(d) your resources

include adequate processes for monitoring and assessing the performance of any of your

obligations, including compliance monitoring, which are outsourced

be regularly assessed for the risk of non-compliance occurring due to their inadequacy or

incompleteness.

Your compliance programs are expected to:

ensure your compliance with the Operating Requirements, including compliance with other

statutory obligations and with any other relevant obligations you have, such as licence and

regulatory approval conditions, industry standards and self-regulatory protocols

ensure full awareness and understanding throughout your organisation of your obligations,

including those in the Operating Requirements

be flexible, responsive, effective and able to have their performance measured

be regularly updated to ensure their completeness, relevance and currency

be provisioned with adequate human and system resources and competencies and an initial

and ongoing training program for all relevant employees and contractors involved in your

business

include any service agreements outsourcing functions to a third party that are material to

your compliance with your obligations

be capable of providing evidence and producing supporting documentation relevant to their

design, implementation and functioning in satisfaction of your reporting obligations under the


AS3806:2006 provides guidance on establishing and managing effective compliance programs and

AS31000:2009 provides guidance on conducting regular risk assessments of your compliance

programs to ensure they remain adequate, complete, contemporary and suitable for the intended

use.


Your compliance programs, and your regular risk assessments of them, are to provide the basis for

all of your reporting, monitoring and assessment obligations under the Operating Requirements,

including the documents, reports and certifications needing to be published or provided to the

Registrar periodically or on request.


In the absence of any formal waivers granted by the Registrar, you are required to:

comply with the whole of the Operating Requirements:

(a) when applying for Approval to be an ELNO

(b) while approved to provide and operate your ELNO System

continually monitor your compliance with the Operating Requirements

(a) demonstrate your compliance:

(b) prior to commencing operations

(c) monthly in your published Monthly Report

(d) annually in your Annual Report to the Registrar

(e) within ten (10) business days of a request from the Registrar

(f) when applying for renewal of your Approval to operate your ELNO System

after you cease to be approved to provide and operate an ELNO System, continue to comply

with specific requirements for:

(a) data retention, generation and use

(b) provision of information to your Subscribers

(c) protection of intellectual property rights

(d) implementation of your Transition Plan (TP).

Compliance with your overall obligation in this way is not in any respect to be diminished by your

compliance with any individual requirement of the Operating Requirements and the specific

compliance guidance that follows.


4 Eligibility Criteria

4.1 ABN

Requirement

You have an obligation to hold an Australian Business Number (ABN) and to be registered for

payment of Good and Services Tax (GST) in Australia.

Purpose

This requirement is to ensure that you can conduct business in Australia.

Scope

This requirement applies to you in the operation of your ELNO System, including your ELN.

Compliance

You are to hold an ABN and be registered for GST.


You are to provide your documentation of complying with this requirement to the Registrar when

applying for Approval to be an ELNO and you are to provide certifications of your arrangements

being unchanged prior to commencing operations and annually thereafter while you remain

approved to operate.


When applying for Approval as an ELNO you are to provide the Registrar with:

your ABN

your GST registration.

Pre-commencement and Annual Documentation

Prior to commencing operations and in each Annual Report to the Registrar, you are to provide a

No-Change Certification that your ABN and GST registrations are unchanged. In the event any

aspect of these arrangements has changed, you are to provide the Registrar with revised

documentation.


4.2 Status

Requirement

You have an obligation to:

be registered under the Corporations Act 2001 (Cth)

obtain any necessary approvals under the Foreign Acquisitions and Takeovers Act 1975

(Cth) if you are a foreign body corporate

ensure your constituting documents allow you to comply with the Operating Requirements.

Purpose

The purpose of this requirement is to ensure you can conduct business in Australia.

Scope



You are to provide your documentation to the Registrar when applying for Approval to be an ELNO

and you are to provide certifications of your status being unchanged prior to commencing

operations and annually thereafter while you are approved to operate.



your ASIC Registration Certificate plus a company search not more than 30 days old

any FIRB approval you require as a foreign body corporate

your constituting documents.

Pre-commencement and Annual Documentation

Prior to commencing operations and in each Annual Report to the Registrar, you are to provide a

No-Change Certification that your status has not changed. In the event any aspect of your status

has changed, you are to provide the Registrar with revised documentation.


4.3 Character

4.3.1 Character and Reputation

Requirement

You have obligations to:

be of good corporate character and reputation

ensure your principals, directors and officers are of good character and reputation

take reasonable steps to ensure your employees, agents and contractors are of good

character and reputation.

Purpose

The purpose of these obligations is to ensure confidence in you as an ELNO.

Scope


Compliance

It is expected that to satisfy this requirement you and your principals, directors and officers will

have not been subject to:

any insolvency event within the previous 5 years

any conviction for fraud or an indictable offence or any offence for dishonesty against any

law in connection with business, professional or commercial activities

disqualification from managing a body corporate

any fine, banning, suspension or other disciplinary measure for financial or professional

misconduct

any disciplinary action by any government or governmental authority or agency, or any

regulatory authority of a financial market or a profession

any refusal of membership or revocation of membership of any financial markets, legal or

accounting professional organisation or body on the grounds of financial or professional

misconduct, fraud or dishonesty

any refusal of an application to provide an electronic conveyancing or electronic lodgment

service in any jurisdiction of Australia or elsewhere

any other material matter to do with honesty, integrity and ethical conduct.

It is also expected that you will take reasonable steps to ensure each of your employees, agents

and contractors has not been subject to any of the same events.


In assuring your compliance with this requirement, it is expected that:

your principals or directors will make sufficient diligent inquiries to be satisfied that you

comply

you will keep records of all inquiries made and of all information collected that demonstrate

your compliance

your processes for the appointment of employees and agents and the engagement of

contractors will include reasonable steps to ensure your employees, agents and contractors

comply.


You are to provide certifications to the Registrar of your compliance when applying for Approval to

be an ELNO, prior to commencing operations and annually thereafter while approved to operate.


When applying for Approval to be an ELNO, you are to provide the Registrar with Self-

Certifications of your compliance with all three obligations of this requirement. Your certifications

are to be supportable by the records of the enquiries made by you or on your behalf. Those

records may need to be produced if it becomes necessary to justify your certifications as having

been given on an informed basis and in good faith.


Prior to commencing operations, you are to provide the Registrar with a No-Change Certification

that nothing has changed and you remain in compliance with all obligations of this requirement.

In the event that something has changed, you are to provide details of the change and new Self-

Certifications that you comply with the requirement.


You are to provide the Registrar annually, as part of your Annual Report to the Registrar, with a

No-Change Certification that nothing has changed and you continue to comply with all obligations

of this requirement.

In the event that something occurs or is brought to your attention that brings into question your

continuing compliance with this requirement, you are to notify the Registrar of the full

circumstances at the earliest possible opportunity.


4.3.2 Governance

Requirement

You have an obligation to maintain contemporary best practice governance arrangements that are

regularly reviewed.

Purpose

The purpose of this requirement is to ensure confidence in you as an ELNO.

Scope


Compliance

It is expected that you will document, establish and maintain efficient and effective organisational

and management arrangements reflective of rigour, transparency and ethical conduct. Your

arrangements on each of these governance characteristics are expected to reflect:

your particular nature and task

the manner in which you choose to undertake your task

the evolving nature of best practice in corporate governance.

AS8000:2003, AS8001:2008 and AS3850:2010 provide guidance on the design and maintenance

of contemporary best practice governance arrangements. The ASX Corporate Governance

Council’s 2010 Principles and Recommendations for listed public companies also provide

guidance.

Specific Inclusions

In settling upon your governance arrangements, particular attention is to be paid to the minimum

requirements you expect of your outsourced service suppliers.


You are to provide your documentation of your governance arrangements to the Registrar when

applying for Approval to be an ELNO together with a certification of those arrangements being

contemporary best practice and suitable for the intended use. You are to provide certifications

prior to commencing operations and annually thereafter while you are approved to operate that

your arrangements remain unchanged, contemporary and suitable for the intended use.



When applying for Approval to be an ELNO you are to provide the Registrar with:

documentation of your governance arrangements

a Self-Certification of your governance arrangements’ complying with contemporary best

practice and being suitable for the intended use.

To provide the Self-Certification that your governance arrangements comply with contemporary

best practice it is expected you will reference the relevant standards and industry

recommendations and practices that justify your certification.



that your governance arrangements remain unchanged. In the event that this is not possible due

to changes you have made to your arrangements, you are to provide documentation of your

revised arrangements and a new Self-Certification of those arrangements being in compliance with

contemporary best practice and suitable for the intended use.



No-Change Certification that your governance arrangements, including their documentation,

remain unchanged, comply with contemporary best practice and are suitable for the intended use.

In the event that you are unable to provide such a certification, you are to provide the Registrar

with:

documentation of your revised governance arrangements

the reason for and basis of the revisions that you have made to your arrangements

your Self-Certification that the revised arrangements comply with contemporary best practice

and are suitable for the intended use.

It is expected that your governance arrangements as adopted and implemented will be regularly

reviewed while you remain approved to operate and any recommendations arising from such

reviews will be promptly implemented in the interests of your continued compliance with the

requirement.


4.4 Financial Resources

Requirement

You have an obligation to demonstrate having sufficient financial resources to meet your

obligations under the Operating Requirements.

Purpose

The purpose of this requirement is to ensure you can sustain the operation of your ELNO System.

Scope

The requirement applies to you in the operation of your ELNO System, including your ELN.

Compliance

Your audited financial statements are to comply with the requirements of the Australian Accounting

Standards Board and s.296 of the Corporations Act 2001 (Cth).

Specific Inclusions

Your audited financial statements are to include:

at least profit and loss, balance sheet and cash flow statements, each with associated

explanatory notes

certifications of correctness by a director and your Chief Financial Officer

an independent certification as a true and fair representation of your financial situation at the

time of certification according to the requirements of the Australian Auditing and Assurance

Standards Board.


You are to provide your audited financial statements to the Registrar together with certifications of

your having sufficient financial resources to meet your obligations under the Operating

Requirements when applying for Approval to be an ELNO, prior to commencing operations and

annually thereafter while you remain approved to operate.



your audited financial statements for the previous two (2) financial years

a Self-Certification of your having sufficient financial resources to meet your obligations

under the Operating Requirements.


To provide this certification, it is expected that you will have assessed what resources you will

need to operate your ELNO System in a proper, competent, sustainable and efficient manner as an

ongoing concern in compliance with the Operating Requirements.


Prior to commencing operations you are to provide the Registrar with a No-Change Certification

that nothing has changed and you continue to have sufficient financial resources to meet your

obligations under the Operating Requirements. If this is not possible for any reason, you are to

provide the Registrar with an appropriate explanation.


You are to provide the Registrar annually, as part of your Annual Report to the Registrar, with:

your audited financial statements for the previous financial year

a Self-Certification that you have sufficient financial resources to meet your obligations under

the Operating Requirements.

To provide this Self-Certification each year, it is expected that you will have assessed what

financial resources you will need to continue to operate your ELNO System in the same or a similar

manner for the foreseeable future. It is expected you will have taken into account in your

assessment your experience to date in operating your ELNO System and any changes and

developments you have planned for the future.

Your Self-Certifications each year of continuing financial resource sufficiency are expected to be

based on an analysis of at least:

your financial position including future cash flow projections

the nature and extent of the market for your services

the continued appropriateness and resourcing of your Business Plan, and

the future financial resource requirements to maintain your service and performance levels.


4.5 Technical Resources

Requirement

You have an obligation to demonstrate having sufficient technical resources to meet your


Purpose


Scope


Compliance

You are to maintain a comprehensive description of your technical arrangements and capability

benchmarked against comparable environments.

Specific Inclusions

It is expected that the description of your technical arrangements and capability will include at

least:

overall technical environment of your ELNO System

special technical characteristics of your ELNO System and its operating environment

management and technical skills required to establish and maintain your ELNO System

market availability of the required management and technical skills

particular qualifications required of your key management and technical specialist staff

means of obtaining and retaining your key management and technical specialist staff

nature and relevant terms of any key resources obtained through personal and service

contracts

numbers and classifications of all of your qualified management and technical specialist staff

arrangements for deploying your key management and technical specialist staff

arrangements for ensuring your key management and technical specialist staff remain up to

date with contemporary technical best practices relevant to your ELNO System and its

operating environment.


You are to provide the Registrar with your technical arrangements and capability description when

applying for Approval as an ELNO together with certifications of your technical resources being


sufficient to meet your obligations under the Operating Requirements when applying for Approval,

prior to commencing operations and annually thereafter while you remain approved to operate.


When applying to be approved as an ELNO, you are to provide the Registrar with:

a comprehensive description of your technical arrangements and capability

a Self-Certification of your having sufficient technical resources to meet your obligations


To provide this Self-Certification, it is expected that you will have assessed what technical

resources you will need to operate your ELNO System in a proper, competent, sustainable and

efficient manner as an ongoing concern.



that nothing has changed and you continue to have sufficient technical resources to meet your

obligations under the Operating Requirements. If this is not possible for any reason, you are to

provide the Registrar with an appropriate explanation.



Self-Certification that you have sufficient technical resources to meet your obligations under the


To provide this Self-Certification each year, it is expected that you will have:

reviewed your currently documented technical arrangements and capability description

assessed what technical resources you will need to continue operating your ELNO System in

the same or a similar manner for the foreseeable future, taking into account your experience

to date in operating your ELNO System and any changes or developments you have planned

for the future

confirmed your currently documented technical capability description or prepared an

amended one justifying your certification.

The Self-Certifications each year of your continuing technical resource sufficiency are to be based

on an analysis of:

your financial position



the technical resource requirements to maintain your existing performance levels.


4.6 Organisational Resources

Requirement

You have an obligation to demonstrate having sufficient organisational resources to meet your


Purpose


Scope


Compliance

You are to maintain a comprehensive description of your organisational arrangements and

capability benchmarked against comparable environments.

Specific Inclusions

It is expected that the description of your organisational arrangements and capability will include at

least:

overall strategy for establishing and running your organisation

resourcing strategy for your organisation

key characteristics of your task that determine your resourcing strategy

key management and specialist resources required

market availability of the required management and specialist resources

means for obtaining and retaining key management and specialist resources

means of obtaining and retaining key management and specialist staff

nature and relevant terms of any key resources obtained through personal and service

contracts

numbers and classifications of all key management and specialist staff

arrangements for deploying key management and specialist staff

arrangements for ensuring key management and specialist staff remain up to date with

contemporary organisational best practices relevant to your systems and operating

environment.


You are to provide the Registrar with your organisational arrangements and capability description

when applying for Approval as an ELNO together with certifications of your organisational


resources being sufficient to meet your obligations under the Operating Requirements when

applying for Approval, prior to commencing operations and annually thereafter while you remain



When applying to be approved as an ELNO, you are to provide the Registrar with:

a comprehensive description of your organisational arrangements and capability

a Self-Certification of your having sufficient organisational resources to meet your obligations


To provide this Self-Certification, it is expected that you will have assessed what organisational

resources you will need to operate your ELNO System in a proper, competent, sustainable and

efficient manner as an ongoing concern.



that nothing has changed and you continue to have sufficient organisational resources to meet

your obligations under the Operating Requirements. If this is not possible for any reason, you are

to provide the Registrar with an appropriate explanation.



Self-Certification that you have sufficient organisational resources to meet your obligations under


To provide this Self-Certification each year, it is expected that you will have:

reviewed your documented organisational arrangements and capability description

assessed what organisational resources you will need to continue operating your ELNO

System in the same or a similar manner for the foreseeable future, taking into account your

experience to date in operating your ELNO System and any changes or developments you

have planned for the future

confirmed your currently documented organisational capability description or prepared an

amended one justifying your certification.

The Self-Certifications each year of your continuing organisational resource sufficiency are to be

based on an analysis of:

your financial position



the organisational resource requirements to maintain your existing performance levels.


4.7 Insurance

Requirement


obtain, and maintain current, specific insurance cover under policies with terms satisfactory

to the Registrar

ensure that your contractors maintain relevant and appropriate policies of insurance to cover

the services they provide to you

notify the Registrar of all claims, and events that may give rise to claims, under those policies

keep the Registrar fully informed of the progress of all claims made under those policies.

Purpose

The purpose of this requirement is to ensure that the residual risks in the operation of your ELNO

System are adequately insured.

Scope

The requirement applies to the operation of your ELNO System, including your ELN.

Compliance

Your insurance policies are to be on terms satisfactory to the Registrar.

You are to obtain your policies from insurers approved by the Australian Prudential Regulation

Authority (APRA) to offer insurance in Australia. A list of the insurers approved by APRA to offer

insurance in Australia is available at http://www.apra.gov.au/GI/Pages/general-insurers.aspx.

Your policies for professional indemnity and for fidelity insurance are to cover the acts and

omissions of your principals, officers and employees. It is expected that you will require the same

of your contractors’ insurance arrangements.

You are to notify the Registrar in writing as soon as practicable when any event occurs that may

give rise to a claim under one of your insurance policies or one of your contractors’ insurance

policies. You are to thereafter keep the Registrar fully informed of the making of the claim and of

its progress to finalisation.

Specific Inclusions

The insurances you are required to hold include:

http://www.apra.gov.au/GI/Pages/general-insurers.aspx


insurances required under any law, such as workers compensation insurance and

compulsory third party motor vehicle insurance

professional indemnity insurance to an amount not less than $20 million per annum

fidelity insurance to an amount not less than $20 million per annum

public and product liability insurance to an amount not less than $10 million per annum

asset insurance to an amount not less than the replacement value of your assets.

The insurances you are to require your contractors to hold include statutory insurances and those

necessary to cover unmitigated risks in the services each contractor provides to you.


You are to provide the Registrar prior to commencing operations and annually thereafter with a

certification of:

holding each insurance cover you are required to hold, and

your contractors holding each insurance you require them to hold.

You are to notify the Registrar in writing as soon as practicable on an ongoing basis of:

each claim received under any insurance policy you hold or you require your contractors to

hold

each event that may give rise to a claim in the future under any insurance policy you hold or

you require your contractors to hold.


Prior to commencing operations, you are to provide the Registrar with a Self-Certification of:

holding each insurance cover you are required to hold, and

your contractors holding each insurance you require them to hold.


You are to provide the Registrar annually, as part of your Annual Report to the Registrar, with a No

Change or a Self-Certification.

If there has been no change in the insurance cover you hold or the cover you require your

contractors to hold, meaning no change in both the policies of insurance and the level of cover in

each instance, you may give a No Change Certification. Otherwise, in giving a Self-Certification, it

is expected you will also include in your Annual Report to the Registrar:

details of any material change to the terms or level of cover of any of the insurance policies


the reason for each such change in policy terms or cover level.

It is also expected that you will include in your Annual Report to the Registrar:

a list for each professional indemnity and fidelity policy of all the claims notified during the

reporting period and the progress of each claim

a list for each public and product liability and asset insurance policy of all of the material

claims notified during the reporting period and the progress of each claim

a list for each policy of all of the events notified during the reporting period likely to give rise

to claims in the future.

Claim and Event Documentation

In notifying the Registrar of a claim received or of an event having occurred which may give rise to

a claim under an insurance policy in the future, it is expected that you will:

provide the notification within five (5) business days of the claim being received or the event

having occurred

include in the notification:

a copy of the claim received or a description of the event that occurred

what action you intend to take to deal with any claim received

what action you intend to take to mitigate the risk of another similar claim being received or

event occurring.


5 Operation of ELN

5.1 Encourage Widespread Industry Use

Requirement

You have an obligation to have and implement a plan to encourage widespread industry use of

your ELN and to deliver economic benefits to your Subscribers.

Purpose

The purpose of the requirement is to ensure use of your ELN results in widespread community

benefits.

Scope

The requirement applies to the operation of your ELN only.

Compliance

You are to have and implement a Business Plan for the operation of your ELN directed at

delivering realisable economic benefits to the community through the services provided to your

Subscribers.

It is expected that your Business Plan will include at least:

demonstrated understanding of the Australian property conveyancing market in each

jurisdiction

summarised market research undertaken to determine the most effective service delivery

model

description of your service delivery model, including the customer base and expected market

penetration nationally and by jurisdiction

timings for the development of operations and delivery of particular services and facilities and

the anticipated means of servicing different classes of users

projections of user take-up and sensitivity analysis, outlining the assumptions made and the

implications of all likely outcomes

intended actions to achieve planned user take-up, overall and by market segment

descriptions and estimates of the economic benefits realisable by each class of users.

Specific Inclusions

Your Business Plan is to provide for your ELN being available:


in each jurisdiction where the land registry is accepting electronic lodgments

to your Subscribers for their use in completing transactions in all jurisdictions where the land

registry is accepting electronic lodgments

for a minimum set of transactions for electronic lodgment in each jurisdiction consisting,

where applicable, of combinations of transfer, mortgage, discharge or release of mortgage,

caveat, withdrawal of caveat, settlement notice and priority notice.


You are to provide the Registrar with:

your Business Plan when applying for Approval to be an ELNO

a certification prior to commencing operations of your Business Plan remaining unchanged

details each year of industry use of your ELN relative to the take-up projections in your

Business Plan.


When applying for Approval as an ELNO, you are to provide the Registrar with your Business Plan.



that your Business Plan remains unchanged. In the event that this is not possible, you are to

provide the Registrar with an explanation and a revised Business Plan.



report on:

progress achieved with your Business Plan, such as:

(a) industry take-up of your ELN

(b) the diversity of industry use of your ELN

(c) the availability of economic benefits to your Subscribers

any material changes made to your Business Plan, such as:

(a) extensions of time

(b) changes in resourcing

(c) refinement of market segments

(d) revision of performance targets

projections for further industry take-up and diversity of use of your ELN in the future

descriptions and estimates of further realisable economic benefits expected to be available to

your Subscribers in the future.


5.2 National System and Minimum Document Capability

Requirement


make your ELN progressively available for electronic lodgment with the land registries in all

States and Territories, and

provide for a minimum set of transactions in each State and Territory where your ELN is

available.

Purpose

The purpose of this requirement is to maximise the value of your ELN to industry, the community

and government.

Scope

This requirement applies to the operation of your ELN only.

Compliance

It is expected that your Business Plan will set out the availability of your ELN and its capability.


Your compliance with this requirement is to be demonstrated within ten (10) business days of a

request from the Registrar while you remain approved to operate.


5.3 General Obligations

5.3(a) Operating in a proper manner

Requirement

You have an obligation to operate your ELN in a proper, competent, sustainable and efficient

manner.

Purpose

The purpose of this requirement is to ensure confidence in the operation of your ELN.

Scope


Compliance

It is expected that you will implement comprehensive and contemporary customer satisfaction and

complaints handling processes to continually monitor the manner in which your operation of your

ELN is being received by its users and relying parties. In this regard, AS10002:2014 provides

guidance on the establishment of such processes.


Your published Monthly Report of complaints received and dealt with is expected to include:

complaints categorised by at least:

subject and source

how many received

how many sustained (ie found justified)

how many resolved and how they were resolved

how many outstanding at end of the month, including carry-overs from previous months

specific complaint categories for at least your:

Subscriber Registration Process (SRP), especially refusals to register (refer Section 14.2)

Subscriber training and awareness programs (refer Section 14.6).


5.3(b) Due care, skill and diligence

Requirement

You have an obligation to exercise due care, skill and diligence in operating your ELN and in your

complying with the Operating Requirements.

Purpose

The purpose of this requirement is to ensure confidence in the use of your ELN.

Scope


Compliance

It is expected that you will implement:

a Risk Management Framework (RMF) compliant with AS31000:2009 (refer Section 9.1)

comprehensive and contemporary customer satisfaction and complaints handling processes

to continually monitor the manner in which your operation of your ELN is being received by

its users and relying parties. In this regard, AS10002:2014 provides guidance on the

establishment of such processes.


Your compliance with this requirement is to be demonstrated:

in the Independent Certifications of your RMF (refer Section 9.1)

in the complaint statistics published in your Monthly Report


operate.


5.3(c) Disruption and interference

Requirement

You have an obligation to minimise any disruption of, or interference to, any systems connected to

your ELN for the purpose of completing conveyancing transactions.

Purpose

The purpose of this requirement is to ensure confidence in the operation of your ELN.

Scope


Compliance

It is expected that you will implement:

proven standards of technical integration in your ELN’s connections with external systems

contemporary products and practices for detection and prevention of unauthorised intrusion

into your systems

complaints handling processes to continually monitor disruptions and interference to

connected external systems. In this regard, AS10002:2014 provides guidance on the

establishment of such processes.


Your compliance with this requirement is to be demonstrated in the complaint statistics published

in your Monthly Report and within ten (10) business days of a request from the Registrar while you

remain approved to operate.


5.3(d) Licences and regulatory approvals

Requirement

You have an obligation to obtain and maintain all necessary licences and regulatory approvals.

Purpose

The purpose of the requirement is to ensure that in every respect the services you provide to your

Subscribers are within the law.

Scope


Compliance

It is expected that you will identify, obtain and keep up to date all licences and regulatory approvals

required in the jurisdictions in which your ELNO System is available.


You are to provide the Registrar with certifications when applying for Approval as an ELNO, prior to

commencing operation and annually thereafter while you remain approved to operate that you

have obtained and hold all licences and regulatory approvals to operate your ELNO System.

It is expected that to support of these certifications you will:

maintain a record of all of the licenses and regulatory approvals required to operate your

ELNO System and the status of each license and regulatory approval required, including

renewals and where necessary any exemptions granted or licences and approvals applied

for but not yet obtained

have made diligent enquiries and not be aware of any other licence or regulatory approval

necessary to operate your ELNO System

be able to provide, within ten (10) business days of a request from the Registrar while you

remain approved to operate, details of the licences and regulatory approvals you are

required to hold and of the enquiries you have made to ensure that the details are complete.


When applying for Approval as an ELNO, you are to provide the Registrar with a Self-Certification

of having obtained all of the licences and regulatory approvals necessary to operate your ELNO

System.




that nothing has changed since you applied for Approval to be an ELNO.

In the event that this is not possible, you are to provide the Registrar with a revised list of the

licences and regulatory approvals you are required to hold and a new Self-Certification of having

obtained them.


You are to provide, in each Annual Report to the Registrar, a No-Change Certification or a Self-

Certification of holding all of the licences and regulatory approvals necessary to operate your

ELNO System.


5.3(e) Pricing Policy

Requirement

You have an obligation to determine your fees according to a publicly available, equitable and

transparent Pricing Policy.

Purpose

The purpose of this requirement is to ensure that your fees are reasonable and you are not

exploiting any lack of market competition for the services you provide.

Scope

The obligation applies to the operation of your ELNO System, including your ELN.

Compliance

You are to publish a Pricing Policy and include in it a set of principles that you apply at all times in

determining the fees to be charged to users of your ELNO System, including your ELN. This is

separate and distinct from any decision you make to publish the fees you determine from the

application of your Pricing Policy.

The principles of your Pricing Policy are to be such as to instil confidence in industry, your users

and the community generally that your fees are determined equitably and transparently. In this

context, “equitable” means your policy is fair, reasonable and just for all parties, and “transparent”

means your policy is expressed openly and candidly, so that it can be easily understood.

Specific Inclusions

Without limiting the principles you may adopt to express your Pricing Policy, it is expected that you

will consider at least:

being cost-reflective, in that there is a direct link between your fees and costs

being forward-looking, in that your fees reflect the least cost of providing the service in the

immediate future

embracing user-pays, in that all services are charged for and any cross-subsidies are

acknowledged, minimised and justified as being in the public interest

ensuring revenue-adequacy, so that your services are sustainable into the future with fees

based on:

(a) benchmarked or competitively determined inputs for establishment costs and operating

expenses

(b) a return of capital based on the life of each asset, and

(c) a risk-related return on capital


promoting sustainable investment by your Subscribers, in that they can invest in the

necessary systems and procedures to take advantage of your services with the certainty of

obtaining an adequate return on that investment

ensuring regulatory efficiency, in that regulatory intrusion and compliance costs for you and

your Subscribers are minimised

facilitating efficient conveyancing services including national consistency for the eventual

achievement of least cost outcomes for all industry participants

being in the public interest, in that they promote economically efficient and sustainable

conveyancing services that deliver a dividend to the end users of those services for the

public investment incurred in establishing the infrastructure for you to provide your services

avoiding perverse or unintended outcomes likely to be in conflict with the public interest.

The extent to which your Pricing Policy is expected to be based upon principles such as these may

vary with the number of genuine competitors operating in the market for your services and the

extent of competition in that market for the services you offer.


Your Pricing Policy is to be made publicly available and its publication is to be kept up to date so

that it can be reviewed and assessed at any time. You can expect at any time to be requested by

the Registrar to demonstrate how your fee determinations comply with your Pricing Policy.


Prior to commencing operations, you are to provide your Pricing Policy to the Registrar.



No-Change Certification that your Pricing Policy, as currently published, remains unchanged and

suitable to your circumstances. In the event that you are unable to provide such a certification, you

are to provide documentation of a revised Pricing Policy to the Registrar for assessment of its

compliance with the obligations to be equitable and transparent.

When certifying to the continuing suitability of your published Pricing Policy in your Annual Report

to the Registrar, it is expected that you will have conducted a review of your policy with regard to at

least:

the continuing applicability to your circumstances of the principles contained in your policy

any need for additional principles in your policy to ensure equity and transparency

consistent application of your policy in determining your fees

identified variances from your policy and the justifiable reasons for those variations

the level of acceptance of your policy among your Subscribers.


5.3(f) Training and awareness programs

Requirement

You have an obligation to adequately train your officers, principals, employees, agents and

contractors in the use of your ELN, and to make them aware of your obligations under the

Operating Requirements, to the extent relevant to their duties and responsibilities.

Purpose

The purpose of this requirement is to ensure your ELN is operated competently and in compliance


Scope


Compliance

It is expected that you will maintain documentation of your training and awareness programs,

setting out at least:

nature, purpose and content of each program

how each program is created, made available and delivered

requirements for undertaking and satisfactorily completing each relevant program

requirements for re-taking each relevant program on a remedial or refresher basis

statistics on the delivery, coverage and effectiveness of each program.

Specific Inclusions

Your training and awareness programs are to specifically include:

the use of all relevant aspects of your ELN

all of your relevant obligations as an ELNO under the Operating Requirements.


Your compliance with this requirement is to be certified annually and demonstrated within ten (10)

business days of a request from the Registrar while you remain approved to operate.



Self-Certification that each of your training and awareness programs is up to date and adequate for

complying with the Operating Requirements.


It is expected that to support your certification you will maintain documentation on the delivery of

your training and awareness programs during the period that will include:

number of programs delivered

numbers by category of persons satisfactorily completing each program

percentage of persons by category completing each program

content and delivery changes made to each program

rationale for each content change and each delivery change made to each program.


5.3(g) Applicable laws and policies

Requirement

You have an obligation to comply with all applicable laws nationally and in each State and Territory

in which your ELNO System is available and with all government policies notified to you in writing

by the Registrar.

Purpose

The purpose of this requirement is to ensure you comply with all laws and regulatory requirements

for operating your ELNO System.

Scope


Compliance

It is expected that you will maintain documentation setting out:

a list of all laws enacted nationally and in each State and Territory in which you are operating

that are relevant to your activities

a brief description of how you are complying with each relevant law

a list of all government policies notified to you in writing by the Registrar (and not withdrawn)

since you first received Approval to operate as an ELNO

a brief description of how you are complying with each notified government policy.

Specific Inclusions

Your documentation is to specifically include compliance with:

privacy legislation, particularly with regard to collection, use, storage, disclosure and

retention of personal information, whether applying nationally or in a State or Territory

taxation legislation, particularly with regard to the application of GST to service fees

competition and consumer legislation, particularly with regard to service pricing, restrictive

practices and barriers to market entry

corporations legislation, particularly with regard to governance requirements

financial services regulation legislation, particularly with regard to the provision of financial

settlement services

anti-money laundering and counter-terrorism financing legislation, particularly with regard to

verification of identity and the operation of financial settlement services

government policies notified to you in writing by the Registrar.



Your compliance with this requirement is to be demonstrated annually with a certification and


operate.



Self-Certification that all relevant laws and notified government policies have been complied with

during the period.

To support each of these certifications, it is expected you will maintain:

a list of the laws and notified government policies relevant to your activities as an ELNO

a description of how each law and government policy was complied with during the period

a report on every potential non-compliance during the period and the remedial action you

took in each instance.


5.3(h) Confidentiality of information

Requirement

You have an obligation to maintain the confidentiality of all information provided to you that the

provider would reasonably expect you to keep confidential.

Purpose

The purpose of this requirement is to create and maintain confidence in the use of your ELNO

System.

Scope


Compliance

It is expected you will have documented procedures and practices in place for:

handling of all information provided to you for which you do not have the express authority of

the provider to disclose to any other party or parties

recording of all actual or potential breaches of confidentiality and their implications

taking remedial action to mitigate the risk of further or continued breaches of confidentiality.

Specific Inclusions

Your documented procedures and practices are to comply with legislation applying nationally and

in a State or Territory with regard to the collection, use, disclosure, storage and retention of

information, including personal information. In this regard, the OAIC Guide to Information Security:

2013 provides relevant guidance.





5.3(i) Reasonable directions

Requirement

You have an obligation to comply with any reasonable direction given by the Registrar for the

purpose of the Operating Requirements.

Purpose

The purpose of this requirement is ensure industry and community confidence in the operation of

your ELNO System.

Scope


Compliance

It is expected you will have documented procedures in place for receiving, assessing,

implementing and reporting on directions received from the Registrar.





5.3(j) Notifiable events

Requirement

You have an obligation to notify the Registrar of all events which have the potential to affect the

integrity of the Titles Register.

Purpose

The purpose of this requirement is to enable the Registrar to protect the integrity of the Titles

Register.

Scope

The requirement applies to you and the operation of your ELN.

Compliance


establishing criteria for events with the potential to affect the integrity of the Titles Register

identifying all events which satisfy the established criteria

recording all identified events which satisfy the established criteria

notifying the Registrar of all recorded events which satisfy the established criteria

regularly reviewing your notifiable event criteria for their continued relevance and

completeness.





5.3(k) Assistance to the Registrar

Requirement

You have an obligation to give such assistance to the Registrar as the Registrar, or his or her

authorised representative, requests in relation to the Registrar’s functions and powers under the

ECNL.

Purpose

The purpose of the requirement is to ensure the security and integrity of the Titles Register.

Scope

The requirement applies to you.

Compliance


receiving requests for assistance from the Registrar or his or her authorised representative

implementing each request in the shortest possible timeframe

recording the outcome of the implementation

reporting to the Registrar on the completion of the request.





6 Initial Testing

Requirement

You have an obligation not to commence operating your ELN without first testing it in accordance

with your Test Plan to the satisfaction of the Registrar.

Purpose

The purpose of this requirement is to ensure your ELN operates correctly.

Scope

This requirement applies to the initial testing of your ELN only.

Compliance

You are to have an extensive and comprehensively documented Test Plan for the initial testing and

certification of all aspects of your ELN. Your Test Plan is expected to be based on at least:

your detailed functionality specifications and comprehensive user documentation

your documented ISMS and BCDRMP

the System Performance measures in Schedule 2 of the Operating Requirements

thorough and rigorous testing procedures prepared in advance and executed under tightly

controlled conditions

methodical test data generation that exercises all aspects of the system’s operation,

connectivity and integration under all possible scenarios

reliable test result recording, evaluation and reporting

sharing of test reports with all involved and affected parties

adequate time for proper execution of all test procedures, evaluation of their outcomes and

sharing of test reports

certifications of correct operation and performance by all relevant responsible persons.

Certifications of correct operation and performance are expected to be obtained from an

independent assessor and/or the entity responsible for each directly interconnected system. Your

Test Plan is to be consistent with the generic testing requirements set out in your CMF for the

testing of all changes made to your ELN after the commencement of operations.

It is expected that your Test Plan will comply with contemporary best practice in testing of systems

in environments comparable to your ELN. In this regard, ISO25010:2011 provides relevant

guidance.


Specific Inclusions

Your Test Plan is expected to include as a minimum testing of your ELN’s:

functionality available to users as well as that on which users and relying parties depend

connectivity with external systems for exchanging messages

responsiveness to the actions of users under all foreseeable load conditions

intrusion resistance for preventing information corruption and unauthorised disclosure

disruption resilience for maintaining system availability in all foreseeable situations

disaster recovery for restoring services after an unexpected disruption.


Your Test Plan is to contain a report on its execution, including all test results and required and

expected certifications of correct operation and performance, and is to be provided to the Registrar

prior to commencing operations


7 Obligations Regarding System Security and Integrity

7.1 Information Security Management System

Requirement

You have an obligation to establish, implement, operate, monitor, review, maintain and keep

current a documented Information Security Management System (ISMS).

Purpose

The purpose of the requirement is to ensure confidence that the information you collect and store

with your ELN is adequately protected from unauthorised access, use, amendment or disclosure.

Scope


Compliance

Your ISMS is to be comprehensively documented and kept up to date. It is to take into account all

of your relevant obligations under the Operating Requirements, including the specific obligations

related to information security at:

Clause 7 (System Security and Integrity)

Clause 14.1 (Subscriber Registration)

Clause 14.3 (Subscriber and User Register)

Clause 14.7 (Monitoring of Subscribers)

Clause 14.8 (Restriction, Suspension and Termination of Subscribers)

Clause 14.9 (Consequences of Restriction, Suspension and Termination of Subscribers)

Clause 19.1 (Retention of Data and Information)

Clause 19.2 (Generation and Retention of Audit Records)

Clause 19.3 (Use).

In addressing these obligations, your ISMS is expected to cover at least:

what system access and use rules, controls and practice assurance, including user

accreditation and compliance monitoring, are employed

how unauthorised system access, use, intrusion and service denial is prevented and

attempts recorded and reviewed

how access to your systems by your employees and contractors is controlled and monitored


how unauthorised additions or modifications to your systems, such as viruses, trojans and

other malware, are detected and removed

how your systems are protected from intrusion or unauthorised access at any facilities where

they are supplied from

how system administration activities are conducted, managed and controlled

how relying parties can efficiently and effectively authenticate digitally signed documents

your requirements of users with regard to use of digital signatures, digital signing and

information protection measures generally

your means and procedures for data recovery in the event of information loss or corruption

your means of integrity vetting, orientation, training, supervision and control of your

employees, agents and contractors; and

your incident management protocols, including corrective actions and responsibilities, and

user and relying party notifications.

Your ISMS is to comply, as a minimum, with AS27001:2013, having regard to the particular

circumstances and environment of your ELN. AS31000:2009 provides guidance on the periodic

risk assessment of your ISMS and the OAIC Guide to Information Security:2013 provides guidance

on the reasonable steps to be included in your ISMS for the protection of personal information.

Specific Inclusions

Your ISMS is to specifically address the following issues in ensuring information security for your

users and relying parties:

your Subscriber Security Policy that each of your Subscribers is to comply with in

accordance with the Participation Rules made under the ECNL and included in their

Participation Agreement with you

access to your ELN by known and authorised persons only (refer Section 7.2)

security of your ELN from information loss or corruption (refer Section 7.3)

accurate presentation and use of data by your ELN (refer Section 7.4).

location of your ELN’s servers in Australia (refer Section 7.5)

reliability and independence of your digital certificate regime and in particular your

compliance with the Gatekeeper requirements issued by the Australian Government and

adopted as best practice by the governments of all jurisdictions (refer Section 7.6)

your means of digital signing verification that ensures that digitally signed documents and

data that are created with your ELN can be verified by relying parties as to whom they were

signed by and that they have not been altered since they were signed (refer Sections 7.7 and

7.8)


your procedures for immediate notification of jeopardised conveyancing transactions (refer

Section 7.9)

your means for preventing the delivery of any documents or data to the Registrar when you

have received notification from a Subscriber that Security Items may have been

compromised or a signing made without authority (refer Section 7.10).

Subscriber Security Policy

Your Subscribers have a significant role to play in ensuring the security of the information you

collect and store. You are to have a Subscriber Security Policy and to keep it up to date. Your

Policy is to be referenced in each Participation Agreement you enter into with each of your

Subscribers with an obligation in the Participation Agreement for the Subscriber to comply with

your Policy.

Your Policy is to cover the measures your Subscribers must implement, operate and maintain to

comply with the Participation Rules, including at least:

what security software they are to use

what measures they are to take to safeguard your and their systems and information from

unauthorised access and use

what measures they are to take to protect their Security Items

what measures they are to take to safeguard their Digital Certificates from unauthorised use

what measures they are to take to safeguard their Access Credentials from unauthorised use

what measures they are to take generally to protect the integrity of your and their systems,

and the transactions completed and documents signed using your and their systems, from

corruption, falsification, unauthorised alteration or disclosure, or misuse.


You are to demonstrate your compliance with this requirement by providing your ISMS

documentation, together with a certification of its being compliant and Fit for Purpose, to the

Registrar prior to commencing operations and at any time that it is materially changed thereafter

while you are approved to operate.

You are also to provide the Registrar with certifications:

of your ISMS being unchanged, compliant and Fit for Purpose annually while you are

approved to operate

that your ISMS will continue to be compliant and Fit for Purpose after implementing any

material change to your ISMS.



Prior to commencing operations, you are to provide the Registrar with:

the documentation of your ISMS

an Independent Certification that your documentation is compliant and Fit for Purpose.


You are to provide the Registrar annually, as part of your Annual Report to the Register, with:

a No-Change Certification that your ISMS, including its documentation, management and

operation, is unchanged, and

an Independent Certification that your ISMS is Fit for Purpose.

In the event that you are unable to provide such a No-Change Certification, you are to submit

revised documentation of your ISMS to the Registrar, together with an Independent Certification of

your ISMS, including its documentation, management and operation, being Fit for Purpose and any

recommendations of the Independent Expert providing the certification.

Material Change Documentation

You are to provide the Registrar with an Independent Certification that, with respect to a proposed

material change to your ISMS, your ISMS will continue to be suitable, adequate and effective and

otherwise Fit for Purpose after implementation of the change.

The Independent Certification is to be obtained and provided to the Registrar prior to implementing

the proposed change and in the event that the certification cannot be obtained the change is not to

be implemented.

A revision to the standard (AS27001:2013) with which your ISMS must comply, having regard to

the particular circumstances and environment of your ELN, is not of itself to be considered a

material change to your ISMS.

Independent Certifications

You are to have:

the documentation of your ISMS reviewed and independently certified as Fit for Purpose by

an Independent Expert prior to submitting the documentation to the Registrar for assessment

and approval to commence operations. In conducting its review and providing its

certification, it is expected that the Independent Expert will at least:

(a) assess the documentation of your ISMS for completeness, currency, integrity and quality


(b) assess the content of your ISMS documentation for compliance with AS27001:2013

having regard to the particular circumstances and environment of your ELN

(c) assess your ISMS as documented against similar systems in comparable situations

(d) make any Essential and Desirable Recommendations as a result of those assessments

(e) provide an Independent Certification as to your ISMS, as documented, being Fit for

Purpose in the circumstances of your ELN

your ISMS, as an operational management system, reviewed and certified annually as Fit for

Purpose by an Independent Expert and to include the review report and Independent

Certification in your Annual Report to the Registrar. This review is to be of the

documentation of your system, of how completely and effectively you have implemented and

continue to operate the documented system, and of how your system as implemented,

operated and managed suits your circumstances and compares with contemporary best

practice. In conducting the review and providing its certification, it is expected that the

Independent Expert will at least:

(a) assess the awareness, knowledge and understanding of your principals, directors,

agents employees and contractors of your ISMS and of their respective responsibilities

in its effective ongoing management

(b) assess the effectiveness of your ISMS in practice by reference to compliance failures,

incident statistics, performance measures and available industry benchmarks

(c) consult with key users and relying parties on the suitability of your ISMS and each of its

key characteristics and implementation features

(d) make any Essential and Desirable Recommendations as a result of those assessments

and consultations

(e) review its findings and recommendations with you and with your key affected, relying

and co-regulatory parties before finalising its review report, certification and any

recommendations

(f) provide an Independent Certification of your ISMS, as documented, operated and

managed, being Fit for Purpose in the circumstances of your ELN

(e) the Specific Inclusions in your ISMS, especially your Subscriber Security Policy,

independently certified as Fit for Purpose as part of each Independent Certification of

your ISMS

any material change proposed to your ISMS independently certified, prior to implementation

of the change, as not affecting the suitability, adequacy and effectiveness and otherwise

fitness for purpose of your ISMS. In conducting the review and providing its certification, it is

expected that the Independent Expert will at least:

(a) assess the nature and extent of the proposed change


(b) review the rationale for the change and the alternatives, if any, available for achieving

the same purpose

(c) examine in detail the impact of the change on users and relying parties, including the

adequacy of proposed documentation changes to your ISMS and your continuing

compliance with AS27001:2013

(d) consult with key users and relying parties on the suitability to them of the change and

each of its key characteristics and implementation features

(e) make any Essential and Desirable Recommendations as a result of these assessments,

examinations and consultations

(f) review its findings and recommendations with you and with your key affected, relying

and co-regulatory parties before finalising its review report, certification and any

recommendations

(g) provide an Independent Certification as to your ISMS, as intended to be changed, being

Fit for Purpose in the circumstances of your ELN.

The Independent Expert you engage in each instance is to be approved in advance by the

Registrar and, on each occasion that such a review and independent certification is undertaken,

any Essential Recommendations of the Independent Expert will be expected to have been

promptly implemented.


7.2 Access to ELN

Requirement

You have an obligation to ensure that the only persons able to access your ELN are:

your registered Subscribers

specific persons authorised by your registered Subscribers

specific persons other than Subscribers authorised by you for particular purposes (ie

privileged users, such as system administrators and technical diagnostic and programming

staff).

Purpose

The purpose of this requirement is to ensure that only known and authorised persons access your

ELN.

Scope


Compliance

As a part of your ISMS, you will be expected to have procedures and requirements in place that

prevent any unauthorised persons from accessing either the information stored in your ELN or the

functionality available in your ELN to authorised persons. Such access is to be prevented for those

persons attempting to access the ELN directly and for those persons with access to any system

connected to your ELN for other purposes, whether legitimate or not.

Specific Inclusions

It is expected that your ISMS will, for each distinct class of person with access of your ELN, pay

particular attention to:

the number of authentication credentials required to gain access to your ELN

the nature and minimum characteristics of those authentication credentials and how they are

created and issued

the way authentication credentials are stored and used by your ELN for entitlement

verification purposes

the hardness of your authentication credentialing arrangements as a whole in preventing

known ways of securing unauthorised access to similar systems.

Your ISMS is also expected to include provision for periodic intrusion testing of your ELN access

control arrangements after you commence operations.



Your compliance with this requirement is to be demonstrated by the Independent Certifications that

your ISMS is Fit for Purpose required by the Registrar prior to commencing operations, annually

thereafter while you are approved to operate, and prior to any material change being made to your

ISMS.


7.3 Security of ELN

Requirement

You have an obligation to protect the information in your ELN from anything that might compromise

conveyancing transactions conducted using it or adversely affect any system connected to it or to

which you supply information.

Purpose

The purpose of this requirement is to ensure conveyancing transactions can be completed using

your ELN without unexpected risk.

Scope


Compliance

It is expected that the protection measures you use to satisfy this obligation will be documented

and maintained as part of your ISMS and will include at least:

physical measures, such as the location and accessibility of your ELN’s servers

system measures, such as firewalls and anti-virus software implemented in your ELN

user measures, such as the authentication credentials used to verify access to your ELN

social measures, such as procedures for authorising new users and for re-setting

authentication credentials.

The nature and extent of the measures you implement to achieve these outcomes are to be such

as to reliably achieve compliance with the Operating Requirements on an ongoing basis. In this

regard, your ISMS will be expected to include arrangements for:

regular testing of the effectiveness of all of your information protection measures

regular reviewing of contemporary best practice in information protection

prompt adoption of well-tested refinements, enhancements and additions to existing

practices and protection measures.




thereafter while you are approved to operate and prior to any material change being made to your

ISMS.


7.4 Data

Requirement

You have an obligation to accurately present and use information received from any source. In

particular, you have an obligation not to alter any data received from a Land Registry without

approval.

Purpose

The purpose of this requirement is to ensure confidence in the use of your ELN.

Scope


Compliance

It is expected that your ISMS will include your arrangements for:

receiving, presenting and processing information received from any source

validating the accuracy of your arrangements initially and at any time that they change

maintaining a record of approvals for altering any data received from a Land Registry

monitoring your compliance with those approvals.




thereafter while you remain approved to operate and prior to any material change being made to

your ISMS.


7.5 Protection of Land Information

Requirement

You have an obligation to ensure that the servers and other physical infrastructure on which you

store and process Land Information are located in Australia.

Purpose

The purpose of this requirement is to ensure that Land Information stored on your ELNO System is

available to the Registrar when necessary for a Compliance Examination or investigation.

Scope

This requirement applies to the operation of your ELNO System, including your ELN.

Compliance

It is expected that your ISMS will include the location of your ELNO System’s servers and other

physical infrastructure in Australia.





your ISMS.


7.6 Digital Certificate Regime

Requirement

You have an obligation to accept only Gatekeeper-compliant Digital Certificates issued by a

Gatekeeper-accredited and independent Certification Authority.

Purpose

The purpose of this requirement is to ensure confidence in the digital signings made with your

ELN.

Scope


Compliance

Your ISMS is required to include:

use of a Gatekeeper-accredited Certification Authority to issue and verify the Digital

Certificates you accept, and you cannot also be that Certification Authority

acceptance of only Digital Certificates issued under a Gatekeeper-approved Certificate

Policy Specification

verification that the Digital Certificates you accept identify the Subscriber, its ABN and the

Key Holder to whom it was issued.





your ISMS.


7.7 Verifying Digital Signing

Requirement

You have an obligation to implement an effective means for verifying that a digitally signed

document and digitally signed data created using your ELN has been signed:

using a Digital Certificate that has not expired or been revoked

using a valid Digital Certificate of the user entitled to sign the document or data

by a user with the signing rights being exercised, and

by a user whose right to sign the document or data has not expired or been restricted,

suspended or terminated.

You also have obligations to:

ensure these signing conditions are met at the time of signing, and

provide the Registrar with information identifying the signer and verifying that the signing

conditions were met at the time of signing.

Purpose

The purpose of this requirement is to ensure confidence in the digital signings made with your

ELN.

Scope


Compliance

It is expected that your means of complying with this requirement will be documented and put into

practice as part of your ISMS.




thereafter while you remain approved to operate and prior to making any material change to your

ISMS.


7.8 Verifying No Alteration

Requirement

You have an obligation to implement an effective means for third parties to verify that digitally

signed documents and data created with your ELN have not been altered since they were signed.

Purpose

The purpose of this requirement is to ensure any alteration to digitally signed documents and data

can be readily detected.

Scope


Compliance

It is expected that the means by which you will comply with this requirement will be documented

and put into practice as part of your ISMS.





ISMS.


7.9 Notification of Jeopardised Conveyancing Transactions

Requirement

You have an obligation to immediately notify those of your Subscribers involved in a conveyancing

transaction when you have reason to believe that the transaction has been jeopardised in any way.

Purpose

The purpose of this requirement is to ensure that the participants in a conveyancing transaction

that may have been jeopardised can take appropriate action to protect their or their clients’

interests.

Scope


Compliance

It is expected that the means by which you will identify the circumstances that may indicate that a

transaction has been jeopardised, deliver notifications to your Subscribers, and confirm that they

have been received, will be documented and put into practice as part of your ISMS.

It is also expected that your arrangements for delivering notifications will include alternative means

of delivery and contingency arrangements in the event that successful delivery cannot be

confirmed.





ISMS.


7.10 Obligations in relation to Notification of Compromised Security

Requirement

You have an obligation to prevent the delivery of any documents or data to the Registrar when you

have received notification from a Subscriber that:

its Security Items, such as authentication credentials, digital certificates and private signing

keys, have or may have been compromised

documents or data have been signed without authority, either of the Subscriber or of the

transacting party the Subscriber is representing.

You also have an obligation to immediately notify the Registrar of the situation in the event that you

cannot prevent delivery to the Registrar of documents and data of a conveyancing transaction

associated with compromised Security Items and/or unauthorised signings.

Purpose

The purpose of this requirement is to ensure any documents or data that may have been digitally

signed without the authority of the transacting party are not registered on the Titles Register.

Scope


Compliance

It is expected that your ISMS will include arrangements for:

receiving notifications from your Subscribers

verifying the authenticity of each notification

acting on each verified notification to either:

(a) prevent delivery of documents and data to the Registrar, or

(b) notify the Registrar of the situation and its circumstances if delivery cannot be prevented.





ISMS.


8 Security and Integrity of Titles Register

Requirement

You have an obligation not to do anything that is likely to diminish the overall security and integrity

of the Titles Register or public confidence in the Titles Register.

Purpose

The purpose of this requirement is to maintain public confidence in the Titles Register.

Scope

This requirement applies to you and the operation of your ELN only.

Compliance

It is expected that you will have:

effective compliance programs for other key requirements in the Operating Requirements,

such as but not limited to:

(a) having adequate information security, risk management and business continuity

arrangements in place

(b) satisfying the minimum Performance Levels required

(c) creating no greater risk of error or fraud in transactions than exists in the paper system

(d) verifying your Subscribers’ compliance with their insurance requirements

(e) having sufficient financial, technical and organisational resources available

(f) being of good corporate character and reputation

a policy on making public statements and comments on property conveyancing and related

matters that complies with the requirement.

It is expected that your policy on public statements and comments will ensure you, including your

principals, directors, officers, employees, agents and contractors, make no public statements that

may negatively impact on public confidence in the Titles Register or the property conveyancing

process, either paper or electronic, in any State or Territory.


You are to provide the Registrar with a certification annually, and within ten (10) business days of a

request from the Registrar while you remain approved to operate, that you have an effective

program in place to comply with the requirement and have done nothing to diminish public

confidence in the Titles Register.




Self-Certification that you have an effective program in place to ensure your compliance with this

requirement and have done nothing to diminish public confidence in the Titles Register.

To support each certification, it is expected that you will maintain comprehensive records of:

your compliance programs directed at maintaining public confidence in the Titles register

your policy on making public statements and comments on property conveyancing and

related matters in all forms of media, including social media

total instances of your public statements and comments on property conveyancing and

related matters during the period

nature, rationale and audience for each of your public statements and comments on property

conveyancing and related matters during the period

nature and source of any adverse reactions to your public statements and comments on

property conveyancing and related matters during the period

remedial actions taken, if any, to each adverse reaction to a public statement or comment on

property conveyancing and related matters during the period

changes made, if any, to your compliance program to address instances of non-compliance

during the period and new compliance risks identified.

In the event that you cannot provide such a certification, you are to provide an explanation of when

you will be able to provide such a certification and what actions you need to take to achieve the

compliance required.


9 Risk Management

9.1 Mitigate Risk

Requirement


current a documented Risk Management Framework (RMF) to enable the identification and

mitigation of risks in the operation of your ELN.

Purpose

The purpose of the requirement is to ensure that all foreseeable risks in the operation of your ELN

are identified, assessed and mitigated.

Scope


Compliance

Your RMF is to be an active means for your effective ongoing management of risk in the

completion of conveyancing transactions using your ELN through:

regular risk assessments and re-assessments

comprehensive and measurable risk mitigation treatments and programs, and

ongoing monitoring and reporting on potential and actual risk incidents and outcomes.

Your RMF is to be fully documented and is to comply, as a minimum, with AS31000:2009 having

regard to the circumstances and environment of your ELN.

Specific Inclusions

Your RMF is to have particular regard for at least the risks associated with:

business continuity and sustainability

service availability and performance

system malfunction

employee error, fraud and sabotage

contractor liability

user error, fraud and sabotage

external intrusion.


Your RMF is also to specifically address the comparative risk of using your ELN to complete

conveyancing transactions to that of using the alternative paper system.

Your RMF is to be fully documented and that documentation is to be kept up to date so that it can

be reviewed and certified:

prior to your commencing operations, by an Independent Expert as a competent plan for a

complying, relevant and adequate RMF that is Fit for Purpose

annually thereafter while you remain approved to operate, by you and an Independent

Expert, as Fit for Purpose.

In each instance of review and certification of your RMF by an Independent Expert, any Essential

Recommendations of that Independent Expert are expected to be promptly implemented.


You are to provide the Registrar with:

the documentation of your RMF prior to commencing operations together with a certification

of its being Fit for Purpose

certifications annually while you remain approved to operate of your RMF being Fit for

Purpose and that using your ELN does not constitute any greater risk to the completion of

conveyancing transactions than the alternative paper system.

You are also to be able to demonstrate your compliance with the requirement within ten (10)




the documentation of your RMF, including your Risk Assessment and Risk Treatment Plan

an Independent Certification and Independent Expert’s review report on the compliance and

adequacy of your RMF documentation as Fit for Purpose.



a No-Change Certification that your RMF, as documented, operated and managed, remains

unchanged suitable for the intended use

a Self-Certification that use of your ELN to complete conveyancing transactions involves no

greater risk of error or fraud than use of the alternative paper system


an Independent Certification and Independent Expert’s review report on your RMF as

documented, operated and managed being Fit for Purpose in the circumstances of your ELN.

In the event that you are unable to provide a certification that your RMF remains unchanged and

suitable for the intended use, you are to submit revised documentation of your RMF to the

Registrar, in conjunction with an Independent Certification of, and Independent Expert’s review

report and recommendations on, the revised documentation being Fit for Purpose.


Your RMF is to be reviewed and certified prior to your commencing operations and annually

thereafter while you remain approved to operate by an approved Independent Expert. This is to

ensure your RMF is and remains Fit for Purpose.

It is expected that the Independent Expert conducting the review will:

assess your documentation for completeness, currency, relevance, integrity and quality

assess the content of your documentation for compliance with AS31000:2009

assess your RMF as documented against similar systems in comparable situations

assess the likelihood that your RMF will ensure that use of your ELN will create no greater

risk of error or fraud than use of the alternative paper system for lodgment of conveyancing

transactions with the Registrar

make any Essential and Desirable Recommendations as a result of these assessments

provide an Independent Certification as to your RMF, as documented, being Fit for Purpose

in the circumstances of your ELN.

Additionally, once you have commenced operations, the Independent Expert will be expected to:

assess the operation and management of your RMF against your documentation of it

assess the awareness, knowledge and understanding of your principals, directors, agents,

employees and contractors of your RMF and their respective responsibilities in it

assess the effectiveness of your RMF in practice by reference to compliance failures,

incident statistics, performance measures and available industry benchmarks

consult with key affected, relying and co-regulatory parties on the suitability of your RMF and

each of its key characteristics and implementation features

provide an Independent Certification as to your RMF, as documented, operated and

managed, being Fit for Purpose in the circumstances of your ELN.

The Independent Expert will be expected to review their findings and recommendations with you

and with your key affected, relying and co-regulatory parties before finalisation of its report,

certification and any recommendations.


9.2 No Increased Risk of Fraud or Error

Requirement

You have an obligation to use reasonable endeavours to ensure that use of your ELN does not

result in a greater risk of fraud or error in completing transactions compared to the risk of fraud or

error in the alternative paper system.

Purpose

The purpose of this requirement is to ensure confidence in the use of your ELN and the integrity of

the Titles Register.

Scope


Compliance

It is expected that:

the Risk Assessment in your RMF will include a comparative assessment of the residual

risks of using your ELN and of the risks of using the alternative paper system

the Risk Treatment Plan in your RMF will ensure the residual risks of using your ELN are no

greater than the risks of using the alternative paper system.


You are to provide a certification to the Registrar annually while you remain approved to operate.


You are to include in each Annual Report to the Registrar a Self-Certification that use of your ELN

involves no greater risk of error or fraud than use of the alternative paper system. In the event that

no identified or unexpected risk events occurred during the period, you may give the Registrar a

No-Change Certification.

To support this certification in each Annual Report to the Registrar, it is expected that you will be

able to provide the Registrar, within ten (10) business days of a request from the Registrar while

you remain approved to operate, details of

all current risks identified and being managed by appropriate mitigation treatments in your

RMF

the incidence of identified risk events, if any, occurring during the period including

descriptions of each risk event and the measures taken to deal with it


the incidence of unexpected risk events, if any, occurring during the period including

descriptions of each risk event and the measures taken to deal with it

an analysis of whether each identified and unexpected risk event occurring during the period

was peculiar to your ELN environment or could also have occurred in the paper system

your comparative assessment of the risk of error or fraud in using your ELN to that of the

alternative paper system.


10 Minimum System Requirements

Requirement

You have an obligation to ensure that your ELN meets minimum requirements determined by the

Registrar.

Purpose

The purpose of this requirement is to ensure your ELN offers a minimum level of service to industry

and government.

Scope


Compliance

You are to provision your ELN with the Registrar’s minimum system requirements with regard to:

functionality provided to your Subscribers and the Registrar (refer Section 10.1(a))

design and provisioning for adaptability to changed requirements (refer Section 10.1(b))

data standard used for communications with Land Registry systems (refer Section 10.3)

business rules applied in the preparation of transactions (refer Section 10.4)

integrity assessment services made available to your Subscribers (refer Section 10.5)

document and data unsigning capabilities available to your Subscribers (refer Section 10.6)

templates used to create documents (refer Section 10.7)

presentations for lodgment only after settlement becomes irrevocable (refer Section 10.8)

presentations for lodgment only after duty has been assessed and paid or an irrevocable

commitment to pay has been made (refer Section 10.9)

presentations for lodgment only after applicable Land Registry fees have been collected or

an irrevocable commitment to pay has been made (refer Section 10.10)

any other requirement determined by the Registrar and advised to you from time to time.





10.1 Functionality

10.1(a) Functionality for Subscribers and the Registrar

Requirement

You have an obligation to ensure that your ELN provides sufficient functionality to enable:

your Subscribers to comply with the Participation Rules, and

the Registrar to comply with relevant legislative obligations and policy requirements.

Purpose

The purpose of this requirement is to ensure your Subscribers and the Registrar are not

constrained in meeting their legal obligations by the functionality of your ELN.

Scope


Compliance

You are to provision your ELN with all of the functionality justifiably required by Subscribers and

the Registrar to meet their legal obligations.





10.1(b) ELN Design and Provisioning

Requirement

You have an obligation to ensure that your ELN is soundly designed and provisioned.

Purpose

The purpose of this requirement is to ensure your ELN is able to be readily maintained and

enhanced to meet the future functionality requirements of Subscribers and the Registrar.

Scope


Compliance

You are to design, provision and maintain your ELN to comply with contemporary expectations of:

being reliable, scalable and flexible

utilising only software fully supported by its provider

being architecturally sound with industry standard code design

being compliant with industry standards for usability and accessibility.

In these regards, ISO25010:2011 provides relevant guidance.


You are to provide the Registrar with certifications prior to commencing operations, and thereafter

annually while you remain approved to operate, that your ELN complies with contemporary

expectations of sound design and provisioning.


Prior to commencing operations, you are to provide the Registrar with an Independent Certification

and Independent Expert review report on your ELN’s compliance with sound design and

provisioning principles.

It is expected that the Independent Expert conducting the review for you will:

assess your design and provisioning benchmarks and practices for completeness, currency,

relevance, integrity and quality

assess your design and provisioning benchmarks and practices against similar performance

measures in comparable circumstances


assess the awareness, knowledge and understanding of your principals, directors, agents

employees and contractors of your design and provisioning benchmarks and practices

assess the effectiveness of your design and provisioning benchmarks and practices by

reference to compliance failures, incident statistics, performance measures, test exercises

and CMPs prepared in accordance with your CMF

consult with key affected and relying parties on the suitability of your design and provisioning

benchmarks and practices


provide an opinion as to the adequacy of your design and provisioning benchmarks and

performance in the circumstances of your ELN.

The Independent Expert will be expected to review its findings and recommendations with you and

with your key affected and relying parties before finalising its certification, report and any

recommendations.



No-Change Certification that your design and provisioning benchmarks and performance remain

unchanged. If in any material respect they have changed, you are to provide an explanation of

where they have changed together with a new Independent Certification and Independent Expert

review report on the continuing compliance of your arrangements with this requirement.

Thereafter, while your most recent Independent Certification and Independent Expert review report

remain relevant and your design and provisioning benchmarks remain unchanged, you are to

provide the Registrar annually, as part of your Annual Report to the Registrar, with a No-Change

Certification.


10.3 Data Standard

Requirement

You have an obligation to:

have a robust means of implementing the Registrar’s data standard, including maintaining

version control and managing backward compatibility as the standard evolves over time

use the data standard for exchanging messages with the Land Registry electronically,

including presenting documents and data to the Registrar for lodgment.

Purpose

The purpose of this requirement is to ensure the Registrar can readily process documents, data

and messages received from your ELN.

Scope


Compliance

You are to have proven processes and procedures in place for:

implementing the Registrar’s data standard for electronic messaging with Land Registries

maintaining version control over the data standard’s use by Land Registries

managing backward compatibility of the data standard’s use by Land Registries.





10.4 Apply Registrar’s Business Rules

Requirement

You have an obligation to apply the Registrar’s business rules to documents and data intended for

presentation to the Registrar for lodgment and to have an orderly means of implementing and

testing the rules.

Purpose

The purpose of this requirement is to ensure confidence in the use of your ELN to present

documents and data to the Registrar for lodgment.

Scope


Compliance

It is expected that you will have documented processes and procedures in place for:

receiving business rules and rule amendments from the Registrar

implementing the Registrar’s business rules and rule amendments in your ELN

testing the effectiveness of your implementation of the Registrar’s business rules and rule

amendments.





10.5 Services to Enable Assessment of Integrity

Requirement

You have an obligation to make services available to your Subscribers that assist them in assuring

the integrity of their conveyancing transactions completed using your ELN, including determination

of the fees payable to the Registrar for lodgment.

Purpose

The purpose of this requirement is to ensure that Subscribers can have confidence in the

transactions completed using your ELN.

Scope


Compliance

It is expected you will have arrangements in place to monitor the use and non-use of your ELN and

to identify and implement enhancements to these services that will assist your Subscribers in

assuring the integrity of their conveyancing transactions completed using your ELN.

As a minimum, your arrangements are to include services for:

Land Title Reference Verification (verifying that a land title reference is valid and suitable for

electronic conveyancing)

Registry Information Supply (obtaining details of a land title for use in preparing documents

and data for lodgment)

Lodgment Verification (verifying that documents and data are acceptable for lodgment)

Title Activity Check (checking whether there has been any recent activity on a land title), and

determining Lodgment Fees payable.





10.6 Ability to Unsign Digitally Signed Documents

Requirement

You have an obligation to enable your Subscribers to unsign any document or data they have

digitally signed using your ELN up until the time the process of settlement and/or lodgment of the

transaction begins.

Purpose

The purpose of this requirement is to ensure confidence in the use of your ELN to prepare and sign

documents.

Scope


Compliance

It is expected you will include a readily-identifiable and conveniently-actionable means of unsigning

documents and data in your ELN that is available to Subscribers and their users in the event that

the circumstances of a conveyancing transaction demand that a digitally signed document or data

not be proceeded with prior to the time of settlement and/or lodgment.





10.7 Document Templates

Requirement

You have an obligation to ensure that the correct document template supplied and determined by

the Registrar is used by Subscribers when preparing instruments and documents using your ELN.

Purpose

The purpose of this requirement is to ensure confidence in the use of your ELN to prepare

documents acceptable to the Registrar.

Scope


Compliance

It is expected you will have arrangements in place for receiving, testing and commissioning

document templates provided to you by the Registrar, including reliable means of managing

multiple template versions and applying template versions according to specific start and end dates

determined by the Registrar.





10.8 Presentation Following Completion of Financial Settlement

Requirement

You have an obligation to ensure that no instrument forming part of a transaction involving financial

settlement is presented to the Registrar for lodgment unless the settlement is irrevocable.

Purpose

The purpose of this requirement is to ensure only completed conveyancing transactions are

presented to the Registrar for lodgment.

Scope


Compliance

It is expected that you will have sufficient controls included in your ELN to prevent the presentation

to the Registrar for lodgment of any document or data forming part of a settlement transaction

while there is any uncertainty as to whether the settlement has been or will be completed.





10.9 Presentation Following Duty Payment or Commitment

Requirement

You have an obligation to ensure that no document or data is presented to the Registrar for

lodgment unless it has been assessed for duty and, where applicable, the duty has been paid or an

irrevocable commitment to pay the duty has been obtained from or on behalf of the party liable for

the duty.

Purpose

The purpose of this requirement is to ensure that no dutiable document or data is presented to the

Registrar for lodgment without certainty that the duty has or will be paid.

Scope


Compliance

It is expected that you will have sufficient controls included in your ELN to prevent the presentation

to the Registrar for lodgment of any document or data on which duty is payable unless the duty has

been paid or an irrevocable commitment to pay the duty has been obtained from or on behalf of the

party liable for the duty.





10.10 Land Registry Fees

Requirement


ensure that no document or data is presented to the Registrar for lodgment unless the fees

payable for lodgment have been collected by you or an irrevocable commitment to pay you

has been obtained from or on behalf of the party liable for the fees

pay or remit to the Registrar all fees payable or collected in the manner determined by the

Registrar

provide all information required by the Registrar for the identification and reconciliation of all

fees paid or remitted.

Purpose

The purpose of this requirement is to ensure the Registrar receives all fees due for the services

provided to your ELN.

Scope


Compliance

It is expected you will have appropriate arrangements including controls in place to ensure that:

no Registry Instrument is presented to the Registrar for lodgment unless the Lodgment Fee

has been collected or you have obtained an irrevocable commitment to pay the fee from or

on behalf of the party liable for the fee

all Lodgment Fees collected and all Information Fees payable are remitted or paid to the

Registrar

all information required by the Registrar to identify and reconcile all fees paid, remitted and

payable are provided to the Registrar.

An irrevocable commitment to pay Lodgment Fees may, for example, be obtained in the

Participation Agreement each Subscriber enters into with you.

The collection of Lodgment Fees on behalf of, and their remittance to, the Registrar is to be under

an agency agreement you enter into with the Registrar prior to commencing operations.





11 Minimum Performance Levels

Requirement

You have an obligation to ensure your ELNO System achieves and maintains the Performance

Levels.

Purpose

The purpose of this requirement is to ensure your Subscribers receive a minimum level of service.

Scope


Specific Inclusions

You are required to achieve, as a minimum, the Performance Levels set out in Schedule 2 of the

Operating Requirements. These Performance Levels include specific measures of:

Service Availability

Service Reliability

System Responsiveness

System Resilience

Incident Resolution

Problem Identification.

Interpretation of Performance Level Measures

The Performance Levels set out in Schedule 2 of the Operating Requirements are to be interpreted

as follows:

Service Availability is a measure of the time your ELNO System is available to your

Subscribers during the time you are required to have it available for the month. It is

expressed as a percentage of the time required to be available during the month.

Your Service Availability requirement is 24 hours a day, 7 days a week, 52 weeks of the year

exclusive of Scheduled Maintenance periods which can only be in Non-Core Hours.

Scheduled Maintenance is system maintenance activity for which system users are given

reasonable notice of in advance.

Service Availability is reduced from the required 100% when a Scheduled Maintenance

period during Non-Core Hours runs over time.


When every Scheduled Maintenance period during a month is completed on schedule or

earlier, your Service Availability performance is 100%.

However, when Scheduled Maintenance periods during Non-Core Hours run over time,

Service Availability is reduced by the total amount of over-run time. For example, in a month

consisting of 31 days (=44640 minutes), a total over-run time of Scheduled Maintenance

periods of 65 minutes during the month would reduce your Service Availability performance

to 99.85% (=(44640-65=44575)/44640=99.85%).

It is expected that your reporting on this performance measure will be accompanied by

details of your:

(a) Scheduled Maintenance periods completed on time

(b) individual and accumulated over-run time on Scheduled Maintenance periods.

Note: Emergency maintenance and other unplanned service disruptions at any time do not

affect your Service Availability performance. They affect your Service Reliability

performance. (see below)

Service Reliability is a measure of the time your ELNO System can be used by your

Subscribers during the time it is available during the month. It is expressed as a percentage

of the time during the month it would have been available in the absence of unplanned

service disruptions.

Your Service Reliability requirement is 99.8% during Core Hours and 99% during Non-Core

Hours. Service Reliability in both Core and Non-Core Hours is reduced by emergency

maintenance and by other unplanned service disruptions of any kind from automatic re-starts

to disaster recovery situations.

When you have no unplanned service disruptions during a month, your Service Reliability

performance is 100%.

Your Service Reliability performance in both Core and Non-Core Hours is reduced by the

accumulated duration of your unplanned service disruptions in the respective period. For

example, an automatic restart disruption lasting 10 minutes during Core Hours in a month

with 20 Business Days (=20x16x60=19200 minutes) would reduce your Core Hours Service

Reliability to 99.95% (=(19200-10=19190)/19200=99.95%). An emergency maintenance

period of 60 minutes during Core Hours in the same month would reduce your Core Hours

Service Reliability performance to 99.63% (=(19200-10-60)/19200=99.63%).


It is expected that you will separately report your Core Hours and your Non-Core Hours

Service Reliability performance each month. It is also expected that your reporting on this

performance measure, during both Core and Non-Core Hours, will be accompanied by

details for each of your:

(a) emergency maintenance periods (eg date, time, duration and purpose)

(b) other unplanned service disruptions by type (eg automatic restarts, software errors,

equipment failures, disaster recoveries, etc)

(c) accumulated durations for each type of service disruption.

Note: All maintenance carried out during Core Hours is emergency maintenance affecting

your Service Reliability performance. Scheduled Maintenance is not permitted during Core

Hours.

System Responsiveness is a measure of the time taken by your system to respond to a

user-initiated request. It is exclusive of the time taken by external communications and

external systems necessary to satisfy the request. It is expressed in seconds of time on

average over a month.

Your Service Responsiveness requirement is less than 3 seconds under all reasonably

expected load conditions.

It is expected that your reporting on this performance measure will include:

(a) the nature of the user-initiated request on which your performance is measured

(b) the average load conditions under which your performance is measured

(c) the manner in which your performance is measured.

System Resilience is a measure of your system’s vulnerability to repeated service

disruptions from the same cause. It is expressed as the number of repeat service disruptions

from the same cause in the preceding six months.

Your System Resilience requirement is less than two. In the event that you experience

multiple service disruptions from more than one cause during the six months, your System

Resilience performance is expected to be reported for each separate cause.


(a) the causes of each service disruption during the month


(b) the actions taken to address the cause of each service disruption during the month

(c) the number of service disruptions for each cause during the preceding six months

(d) the accumulated service disruption time for each cause during the preceding six months.

Incident Resolution is a measure of your system’s recovery time from a service disruption.

It is expressed in hours or minutes of time from the incident’s inception.

Your Incident Resolution requirement is less than 4 hours for disaster recovery situations and

less than 40 minutes for all other situations such as automatic restarts, software errors or

equipment failures.

It is expected that your reporting on this performance measure will include your:

(a) time taken to resolve each disaster recovery service disruption

(b) time taken to resolve each non-disaster recovery service disruption.

Problem Identification is a measure of your ability to identify the root cause of each service

disruption experienced by your system. It is expressed in days, hours and minutes of time

from your system’s recovery from the service disruption.

Your Problem Identification requirement is less than 3 Business Days.


(a) the nature of each service disruption during the period

(b) the identified root cause of each service disruption

(c) the time at which full recovery from the service disruption was achieved

(d) the time at which the root cause of the service disruption was identified

(e) the time taken to identify the root cause of each service disruption.

Note: A root cause is to be reported for each service disruption affecting your Service

Reliability performance. Emergency maintenance is a service disruption requiring the

identification and reporting of a root cause.

Compliance

It is expected that your ELNO System will meet or exceed the Performance Levels at all times and

that you will have sufficient means of monitoring and documenting your performance to

demonstrate your compliance with the Performance Levels.



You are to publish records of your ELNO System’s performance in your Monthly Report and

provide the Registrar annually while you remain approved to operate with a certification that you

have complied with the Performance Levels for the period.


Your Monthly Report is to include, as a minimum, the performance of your ELNO System for the

preceding month against the minimum level required for each Performance Level set out in

Schedule 2 of the Operating Requirements. You may also include reporting on additional

performance measures in the Report.

It is also expected that you will maintain and publish historical performance statistics that will

enable identification of trends in performance over at least the previous twelve (12) months as an

indication of your ELNO System’s likely future performance.

Your Monthly Reports are expected to be sufficiently detailed and self-explanatory to enable ready

assessment of you and your ELNO System’s performance over the preceding month and year.



Self-Certification of your and your ELNO System’s having complied with the Performance Levels

for the period.

It is expected you will base your Self-Certifications of compliance each year on detailed records of

performance against each of the six Performance Levels in Schedule 2 of the Operating

Requirements.

In the event you cannot provide a Self-Certification of compliance in your Annual Report to the

Registrar, it is expected you will provide an explanation of the cause of the non-compliance and a

description of the remedial actions you have taken.


12 Business Continuity and Disaster Recovery Management

12.1 Business Continuity and Disaster Recovery Management Program

Requirement

You have an obligation to establish, implement, operate, monitor, review, maintain, test and keep

current a documented, detailed and comprehensive Business Continuity and Disaster Recovery

Management Program (BCDRMP).

Purpose

The purpose of the requirement is to ensure you can continue to operate your ELN with the

minimum of service disruption to your Subscribers and the Registrar.

Scope


Compliance

It is expected that your BCDRMP will be fully documented and include at least:

identification and risk rating of all foreseeable disaster and business and service interruption

scenarios

development of appropriate risk mitigation measures, including essential system design

features, for each foreseeable disaster and business and service interruption scenario

consultation with key affected, relying and co-regulatory parties on acceptable degraded

service standards and scenarios

determination of essential system design and operation features and characteristics

provisioning of back-up facilities, for regular and emergency use

specification and programming of essential maintenance activities

documentation of disaster recovery event invocation, communication and management

protocols

specific provisions for achieving the Performance Levels in Schedule 2 of the Operating

Requirements

planning, conduct and evaluation of regular test event exercises

incorporation of lessons learned from each test event exercise.

AS5050:2010 provides general guidance and ISO24762:2008 provides specific guidance on the

development, documentation and operation of an effective BCDRMP. Your BCDRMP is to comply

with these standards having regard for the particular circumstances of your ELN.



You are to provide your BCDRMP documentation to the Registrar prior to commencing operations

with a certification of its being Fit for Purpose. Annually thereafter while you are approved to

operate you are to provide the Registrar with a certification that your BCDRMP, as documented,

implemented and managed, is Fit for Purpose.



your BCDRMP documentation

an Independent Certification and Independent Expert review report on your BCDRMP

documentation being Fit for Purpose.



a No-Change Certification that your BCDRMP, as documented, implemented and managed,

remains unchanged and suitable for the intended use

an Independent Certification and Independent Expert review report on your BCDRMP as

documented, implemented and managed being Fit for Purpose.

In the event that you are unable to provide a No-Change Certification that your BCDRMP remains

unchanged and suitable for the intended use, you are to provide revised documentation of your

BCDRMP to the Registrar, in conjunction with the Independent Certification, Independent Expert

review report and recommendations of your BCDRMP, as currently documented, implemented and

managed, being Fit for Purpose.


Your BCDRMP documentation is to be reviewed and certified prior to your commencing operations

and your BCDRMP, as documented, implemented and managed, is to be certified annually

thereafter while you remain approved to operate by an Independent Expert. This is to ensure your

BCDRMP is and remains Fit for Purpose.

It is expected that the Independent Expert conducting the review of your BCDRMP documentation

prior to your commencing operations will:

assess your BCDRMP documentation for completeness, currency, relevance, integrity and

quality

assess the content of your BCDRMP documentation for compliance with relevant industry

standards


assess your BCDRMP as documented against similar programs in comparable situations


provide an Independent Certification as to your BCDRMP, as documented being Fit for

Purpose in the circumstances of your ELN.

Additionally, once you have commenced operations, the Independent Expert will be expected to:

assess the implementation and operation of your BCDRMP against your documentation

assess the awareness, knowledge and understanding of your principals, directors, agents

employees and contractors of your BCDRMP and their respective responsibilities in it

assess the effectiveness of your BCDRMP in practice by reference to compliance failures,

incident statistics, performance measures, test exercises and available industry benchmarks

consult with key affected, relying and co-regulatory parties on the suitability of your BCDRMP

and each of its key characteristics and implementation features

provide an Independent Certification as to your BCDRMP, as documented, implemented and


The Independent Expert will be expected to review its findings and recommendations with you and

with key affected, relying and co-regulatory parties before finalisation of its report, certification and

any recommendations.


12.2 Review

Requirement

You have an obligation to have your BCDRMP regularly reviewed by an Independent Expert. You

also have an obligation to implement any Essential Recommendations made by the Independent

Expert as a result of such a review.

Purpose

The purpose of this requirement is to ensure your BCDRMP remains Fit for Purpose.

Scope


Compliance

You are to provide the Registrar annually with an Independent Expert report and certification that

your BCDRMP is Fit for Purpose.

It is expected that the Independent Expert conducting the review will at least:

assess the quality, appropriateness and extent of your BCDRMP documentation

assess the quality and extent of your implementation of your BCDRMP

assess your records of test exercises and real invocations of your BCDRMP during the

period

research and assess contemporary best practice in BCDRMP documentation and

implementation

review and assess the development of International and Australian Standards for BCDRMP

consult with you and with key affected, relying and co-regulatory parties on relevant issues to

do with your BCDRMP

make appropriate Essential and Desirable Recommendations for enhancing the compliance

and effectiveness of your BCDRMP

present you with a written report setting out all findings, conclusions and recommendations

from the review

provide an Independent Certification of your BCDRMP, as documented, implemented and



Your compliance with this requirement is to be demonstrated in conjunction with the Independent

Certification of your BCDRMP required to be included in each Annual Report to the Register while

you remain approved to operate.


13 Change Management

13.1 Change Management Framework

Requirement


current a documented, detailed and comprehensive Change Management Framework (CMF).

Purpose

The purpose of the requirement is to ensure that changes made to your ELNO System and

procedures are planned and implemented in an orderly manner.

Scope


Compliance

Your CMF is to be a comprehensive, documented framework of policies, practices and procedures

from which specific Change Management Plans (CMPs) can be readily prepared for making

specific system, procedural and service changes relevant to:

your obligations under the Operating Requirements

the use of your ELNO System by your Subscribers

the operation of your ELNO System, including your ELN.

Your CMF is to be used as the consistent and comprehensive basis for your preparation of a

situation-specific CMP in each instance of a:

system or software release

functionality or service change

significant maintenance activity.

In each instance, your CMF is to provide a framework for addressing the particular context,

characteristics, requirements and implications of the proposed change to ensure effective planning,

management and control of all of the actions required by all parties irrespective of the reason for or

source of the change.

Your CMF is to cover both changes initiated by the Registrar and changes initiated by you or other

relying parties in response to demands from your Subscribers or market conditions. In this regard,

your CMF is expected to provide for at least:


new system and software module releases

changes to service infrastructure

changes to data standards and communications protocols

changes to data requirements, document templates and/or transaction assurance services

changes requested by the Registrar in response to legislative obligations and notified policy

requirements

changes arising from legislative change generally

changes delivering functionality and service enhancements to users

changes arising in relation to system maintenance activities

emergency changes responding to specific incidents such as a security breach

changes required to implement a direction of the Registrar under the Operating

Requirements or your Operating Agreement with the Registrar.

The preparation of each situation-specific CMP consistent with your CMF is to involve all affected

and relying parties collaboratively in assessing impacts, costs, risks and tasks to be completed. In

this regard, it is expected that your CMF will make provision for each CMP to include at least:

notice to all affected and relying parties of the proposed change providing details of:

(a) the reason for the change and its significance to all parties

(b) the tasks expected to be required to effect the proposed change including

comprehensive testing and certification of correct operation

(c) the risks associated with the proposed change and how they are to be mitigated and/or

allocated

(d) alternative strategies for mitigating risks associated with the proposed change

(e) costs and fees associated with the proposed change and who is to bear them

(f) a preliminary schedule for implementing the proposed change

(g) a timetable for agreeing a final version of the CMP to be implemented

a mechanism for all affected and relying parties to agree matters related to the proposed

change

thorough testing of the change to the satisfaction of all affected and relying parties before

implementation and commissioning

reasonable notice to all affected and relying parties of when the change is to be implemented

and commissioned

implementation and commissioning of the change in a manner that minimises disruption to all

affected and relying parties and interference with any systems connected to your ELNO

System for the purposes of carrying out conveyancing transactions.

In the definition and documentation of your CMF, ISO20000:2011 provides relevant guidance.


Specific Inclusions

Your CMF is expected to specifically provide standard and proven methodologies for:

assessing the business impacts of a proposed change and their significance

assessing the costs involved in a proposed change and how they will be funded

assessing the risks involved in a proposed change and how they will be mitigated

communicating and consulting with all affected and relying parties and key stakeholder

groups about a proposed change

agreeing the scope and content of a proposed change with all affected and relying parties

and key stakeholder groups

planning and documenting the steps necessary to implement, test and commission a

proposed change.


Your CMF documentation is to be provided to the Registrar prior to commencing operations and,

annually thereafter while you remain approved to operate, you are to provide the Registrar with a

certification or revised documentation.


Prior to commencing operations, you are to provide the Registrar with your CMF documentation.



No-Change Certification that your CMF, as documented and implemented, is unchanged and

remains suitable for the intended use.

To support your certification, it is expected that you will maintain records of:

the number, nature and content of all CMPs prepared in accordance with your CMF during

the previous twelve (12) months

the number, nature and content of any CMPs prepared at variance from your CMF during the

previous twelve (12) months together with the reasons for each variation.

It is expected that you will be able to provide these records within ten (10) business days of a


In the event that you are unable to provide a certification, you are to provide revised documentation

of your CMF to the Registrar with details of:


the nature and content of any material changes made to your CMF during the period

the circumstances and rationale for each material change made to your CMF during the

period

any inadequacies identified in your CMF during the period and how each was addressed or

is intended to be addressed

your assessment of the general suitability of your CMF for the ongoing management of your



13.2 No Changes other than in accordance with Change Management Framework

Requirement

You have an obligation not to make changes to your ELNO System unless they are done so in

accordance with a specific CMP prepared in compliance with your CMF.

Purpose

The purpose of this requirement is to ensure that the only changes made to your ELNO System

are in compliance with your CMF.

Scope


Compliance

You are required to make all changes to your ELNO System, including significant maintenance, in

accordance with a CMP complying with your CMF.





14 Subscribers

14.1 Subscriber Registration

Requirement

You have an obligation to establish, review, implement and keep current a Subscriber Registration

Process (SRP).

Purpose

The purpose of this requirement is to ensure that:

only eligible persons are registered and remain registered as Subscribers to your ELNO

System, and

only those Subscribers legally entitled to carry out conveyancing work represent transacting

parties in using your ELNO System.

Scope


Compliance

Your SRP is expected to be a comprehensive, documented process that:

covers the entire lifecycle of a Subscriber registration to use your ELN, from first applying to

be registered as a Subscriber to after ceasing to be a Subscriber to your ELN

is your principal tool for managing entitlement to use your ELN

includes provisions for mitigating the risks of registering an ineligible Subscriber and in

allowing an unentitled Subscriber to represent a transacting party in using your ELN.

Your SRP is to ensure you only register Subscribers to use your ELN that:

satisfy the Subscriber eligibility criteria set out in the Participation Rules

have had their identity verified according to the Subscriber Identity Verification Standard in

the Operating Requirements

enter into a Participation Agreement with you that includes a commitment to comply with the

Participation Rules

are legally entitled, if necessary, to represent transacting parties in the jurisdiction where the

land involved in the transaction is located.

Your SRP is expected to provide for:


publishing the processes for applying to be a Subscriber to your ELN and for your assessing

those applications

applying and recording each applicant’s (and if necessary the person representing them)

compliance with the Subscriber Verification of Identity Standard set out in Schedule 7 of the

Operating Requirements

verifying the authority of an applicant (or of the person representing the applicant) to sign

your Participation Agreement

verifying that the person signing the Participation Agreement is the same person whose

identity and authority to sign has been verified

applying the eligibility criteria for Subscribers set out in the Participation Rules

creating and maintaining a register or registers of your Subscribers

obtaining and verifying all data necessary to assess initial and ongoing compliance with the

eligibility criteria for Subscribers set out in the Participation Rules

receiving notifications from credentialing authorities, including legal and conveyancing

profession regulators and statutory and market insurers, of non-renewals, suspensions or

cancellations of required credentials

making adequate training resources and information available to successful applicants

monitoring the continuing compliance of your Subscribers with their eligibility criteria and the

Participation Rules generally

applying restriction, suspension or termination of your Subscriber registrations at the request

of the Registrar or otherwise in accordance with the Participation Rules and notifying the

Registrar accordingly

permanently recording in your registers of Subscribers at least the following data items and

documents:

the application to be a Subscriber

discrete data items contained in the application

applicant’s signature

signed Participation Agreement

applicant’s identity documents sighted and verified in accordance with the Subscriber Identity

Verification Standard in the Operating requirements

evidence of the applicant’s identity and authority to sign the Participation Agreement where

the applicant signs for the Subscriber

applicant’s eligibility credentials verified, including where necessary evidence of the

insurance required to be held

advices and notifications obtained from third parties as to the applicant’s character and

reputation

notifications received from credentialing authorities


current status of the Subscriber

administrative actions taken affecting the Subscriber’s registration status.

Specific Inclusions

Your SRP is to specifically provide for:

treating all applicants seeking to be registered as Subscribers to your ELN fairly and

transparently

maintaining a register of all of your Subscribers including those whose registration has

expired or been restricted, suspended, terminated or re-instated, and when those events

occurred

offering successful applicants a Participation Agreement that does not in any way conflict

with or adversely affect the Participation Rules

making training resources and information available to successful applicants in how to use

your ELN

monitoring the compliance of your Subscribers with the Participation Rules, in particular

continuing compliance with their insurance and professional standing eligibility requirements

assessing instances of Subscriber non-compliance or likely non-compliance with the

Participation Rules, taking action as justified and notifying the Registrar of what has

happened and why

implementing directions from the Registrar to restrict, suspend or terminate a Subscriber’s

registration or use of your ELN

including in your register of Subscribers reference to the Participation Agreement entered

into with the Subscriber and any amendments made subsequently together with the dates of

those events

including in your register of Subscribers the details of each User entitled to use your ELN on

behalf of the Subscriber

complying with Privacy Laws on the collection, storage and use of personal information.


You are to provide your SRP documentation to the Registrar prior to commencing operations and

annually thereafter while you remain approved to operate you are to provide the Registrar with a

certification.


Prior to commencing operations, you are to provide your SRP documentation to the Registrar.




Self-Certification that your SRP remains compliant with the Operating Requirements. It is

expected that to provide this certification, you will make and retain comprehensive records of:

the number of Subscriber applications received during the period and the number and

percentage approved

the number of Subscriber applications rejected during the period and the reasons by

category for the rejections

the nature and content of any material changes made to your SRP during the period

the circumstances and rationale for each material change made to your SRP during the

period

any inadequacies identified in your SRP during the period and how each was addressed or is

intended to be addressed

your assessment of the general and continuing suitability of your SRP for ongoing

management of your obligations in regard to Subscriber registrations.

It is expected that you will be able to provide the Registrar with these records in support of a

certification within ten (10) business days of a request to do so.


14.2 Unreasonable Barriers or Refusal to Accept Subscriber

Requirement

You have obligations not to:

impose any unreasonable barriers to applying to become a Subscriber to your ELN

unreasonably refuse to accept any applicant to be a Subscriber to your ELN who is capable

of meeting the eligibility criteria for Subscribers in the Participation Rules

impose any unreasonable barriers on a Subscriber using your ELN.

Purpose

The purpose of this requirement is to maximise the use of your ELN.

Scope


Compliance

It is expected that your SRP will include practices, procedures and controls directed at ensuring fair

and transparent processes for receiving and assessing Subscriber applications and for providing

access to your ELN, and that you will implement a comprehensive and contemporary customer

satisfaction and complaints handling processes to continually monitor your compliance with this

requirement. In this regard, AS10002:2014 provides guidance on the establishment of such

processes.


Your compliance with this requirement is to be demonstrated in the documentation of your SRP

provided prior to your commencing operations and thereafter monthly in the publication of

complaints received and annually in the certification provided while you remain approved to

operate.




Each month you are to publish in your Monthly Report the numbers of complaints you received in

the prior period concerning refusal to register an applicant as a Subscriber or to provide a

Subscriber access to your ELN in accordance with Category Four of Schedule 3 of the Operating

Requirements.




Self-Certification that your SRP remains in compliance with the Operating Requirements.

To provide your certification it is expected that you will conduct a review of the relevant practices,

procedures and controls in your SRP and of the incidence of relevant complaints received during

the period and be able to provide the documentation of your review within ten (10) business days

of a request from the Registrar while you remain approved to operate.


14.3 Maintain Subscriber and User Register

Requirement

You have an obligation to maintain a register of all persons entitled to use your ELN, including

those persons whose registration has expired or been restricted, suspended, terminated or re-

instated.

Purpose

The purpose of this requirement is to ensure confidence in the use of and reliance on your ELN.

Scope


Compliance

It is expected that your compliance with this requirement will be part of your SRP.


Your SRP documentation, including your processes for complying with this requirement, is to be

provided to the Registrar prior to your commencing operations and annually thereafter while you

remain approved to operate you are to provide the Registrar with a certification.


Prior to commencing operations, you are to provide your SRP documentation to the Registrar



No-Change Certification that your SRP including your processes and procedures for maintaining a

register of all persons entitled to use your ELN remain unchanged.


procedures and controls in your SRP and be able to provide the documentation of your review


operate.

In the event that you are not able to provide a No-Change Certification, you are to provide revised

documentation of your SRP.


14.4 Evidence of Subscriber Insurance and Verification of Identity

Requirement

You have an obligation to obtain and retain evidence of:

each of your Subscriber’s holding the insurance they are required to hold under the

Participation Rules at all times they remain registered as a Subscriber

your verification of the identity of each of your Subscribers or of the person representing

them and their authority to sign your Participation Agreement on the Subscriber’s behalf.

Purpose


Scope


Compliance

It is expected that your processes for compliance with this requirement, including both verification

of each Subscriber’s identity, authority and insurance adequacy and ongoing monitoring of their

continuing insurance adequacy, will be documented as part of your SRP.


Your SRP documentation, including your processes for complying with this requirement, is to be

provided to the Registrar prior to your commencing operations and annually thereafter while you

remain approved to operate you are to provide the Registrar with a certification.


Prior to commencing operations, you are to provide your SRP documentation to the Registrar



No-Change Certification that your processes for ensuring your Subscribers obtain and retain their

required insurances and for your recording of evidence supporting your verification of the identity of

your Subscribers or of the person representing them and their authority to sign your Participation

Agreement on the Subscriber’s behalf remain unchanged.


procedures and controls in your SRP and provide the documentation of your review within ten (10)

business days of a request from the Registrar while you remain approved to operate. In the event

that you are not able to provide a No-Change Certification, you are to provide revised

documentation of your SRP.


14.5 Participation Agreement and Participation Rules

Requirement

You have an obligation to ensure your Participation Agreement does not in any way conflict with

the Participation Rules each of your Subscribers are required to comply with under the ECNL.

Purpose


Scope


Compliance

Your Participation Agreement is not to contain any express or implied term that could qualify,

derogate from or otherwise prejudicially affect any Subscriber obligation set out in the Participation

Rules.


You are to provide your Participation Agreement to the Registrar prior to commencing operations

and, annually thereafter while you remain approved to operate, you are to provide a certification.

Pre-Commencement Documentation

You are to provide your Participation Agreement (or Agreements if you intend to use more than

one) to the Registrar prior to commencing operations.


You are to provide the Registrar, as part of your Annual Report to the Registrar, with a No-Change

Certification that your Participation Agreement or Agreements remain unchanged.

It is expected that to support your certification you will maintain a record of the creation and

amendment of your Participation Agreement or Agreements that can be provided to the Registrar

within ten (10) business days of a request.

If you are not able to provide a No-Change Certification, you are to provide the Registrar with your

revised Agreement or Agreements.


14.6 Training

Requirement

You have an obligation to make adequate training resources and information available to your

Subscribers, including their users, in relation to their use of your ELN so that they can become

proficient in its use.

Purpose

The purpose of this requirement is to ensure confidence in the use of and reliance on your ELN

and to maximise its use.

Scope


Compliance

It is expected that your SRP will include the training resources and information made available to

your Subscribers and their Users and that you will implement a comprehensive and contemporary

customer satisfaction and complaints handling processes to continually monitor your compliance

with this requirement. In this regard, AS10002:2014 provides guidance on the establishment of

such processes.



provided prior to your commencing operations and thereafter, monthly in the incidence of

complaints received and annually in the certification of continuing compliance provided, while you





Each month you are to publish in your Monthly Report the numbers of complaints you received in

the prior period concerning the training resources and information made available to Subscribers in

accordance with Category Four of Schedule 3 of the Operating Requirements.



Self-Certification that your SRP, including the adequacy of the training resources and information

made available to your Subscribers, remains in compliance with the Operating Requirements.


To provide this certification it is expected that you will have conducted a review of the training

resources and information made available to your Subscribers and of the incidence of relevant

complaints received during the period and be able to provide the documentation of your review


operate.

If you are not able to provide a No-Change Certification, you are to provide the Registrar with your

revised SRP documentation.


14.7 Monitoring of Subscribers and Suspension or Termination

Requirement

You have an obligation to continuously monitor the compliance of your Subscribers with their

obligations under the Participation Rules, including the eligibility criteria for Subscribers, and when

necessary to notify the Registrar of any action you take to restrict, suspend or terminate access to

your ELN.

Purpose


Scope


Compliance


If your monitoring of your Subscribers indicates any actual or potential breach of the Participation

Rules that constitute a Suspension or Termination Event , you are to assess whether any action is

justified to restrict, suspend or terminate the Subscriber’s registration or access to your ELN in

accordance with your SRP and if necessary take the action and immediately notify the Registrar in

writing.

When notifying the Registrar of a Subscriber’s registration or access to your ELN having been

restricted, suspended or terminated, you are to advise the Registrar of the:

legal name of the Subscriber

details of the actual or impending Suspension or Termination Event

reason for your belief that the relevant eventhas occurred or is likely to occur

action you have taken or intend to take.



provided prior to commencing operations.


Prior to commencing operations, you are to provide your SRP documentation, including the

processes and procedures used to continuously monitor the compliance of your Subscribers and

take appropriate action where necessary, to the Registrar.


14.8 ELNO must Restrict, Suspend or Terminate Subscriber if Directed by Registrar

Requirement

You have an obligation to restrict, suspend or terminate a Subscriber’s registration and use of your

ELN if directed to do so by the Registrar.

Purpose

The purpose of this requirement is to ensure confidence in your ELN and to protect the integrity of

the Titles Register.

Scope


Compliance







processes and procedures used to implement a direction from the Registrar to restrict, suspend or

terminate a Subscriber, to the Registrar.

It is expected that you will be able to provide the Registrar with details of the actions taken to

comply with this requirement within ten (10) business days of a request to do so.


14.9 Consequences of Restriction, Suspension or Termination

Requirement

You have an obligation to ensure any Subscriber whose registration or use of your ELN has

expired or been restricted, suspended or terminated cannot use your ELN otherwise than in

accordance with their status.

You also have obligations to:

allow any documents already signed by the Subscriber prior to their registration or use of

your ELN having expired or been restricted, suspended or terminated to be presented to the

Registrar for lodgment if you are satisfied no party would be disadvantaged

allow another Subscriber authorised by the relevant transacting party to take over the role of

the Subscriber whose registration status has been changed for the purposes of completing

an incomplete transaction.

Purpose


Scope


Compliance







processes and procedures used to provide your Subscribers with access to your ELN and to

enable completion of any transactions affected by restriction, suspension or termination of a

Subscriber, to the Registrar.

It is expected that you will be able to provide the Registrar with details of the actions taken to

comply with this requirement within ten (10) business days of a request to do so.


15 Compliance Monitoring and Reporting

15.1 Monitor Compliance

Requirement

You have an obligation to continually monitor your compliance with the Operating Requirements.

Purpose

The purpose of this requirement is to ensure confidence in you and your ELNO System, including

your ELN.

Scope


Compliance

You are to have processes in place for continually monitoring your compliance with the Operating

Requirements.

It is expected you will have documented processes in place for:

ensuring you have a compliance program for each Operating Requirement

including a performance monitoring function in each of your compliance programs

maintaining records of the performance of each of your compliance programs

regularly reviewing the performance of each of your compliance programs

regularly assessing the risk of each program not adequately mitigating non-compliance.

AS3806:2006 provides guidance on establishing and managing effective compliance programs and

AS31000:2009 provides guidance on conducting regular risk assessments of your compliance

programs to ensure they remain adequate, complete, contemporary and suitable for the intended

use.


Your compliance with this requirement is to be demonstrated by a certification annually while you




You are to provide the Registrar, as part of your Annual Report to the Registrar, with a Self-

Certification of your having continually monitored your compliance with the Operating

Requirements.

To support your certification, it is expected you will have conducted a review of your relevant

processes and be able to provide the documentation of your review within ten (10) days of a

request from the Registrar.

If you are not able to provide the certification, it is expected you will provide an explanation for the

non-compliance and details of the remedial action you have taken.


15.2 Demonstrate Compliance

Requirement

You have an obligation to demonstrate your compliance by:

producing Specified Documents, including an Annual Report to the Registrar, and publishing

Monthly Reports

providing Self-Certifications, including No-Change Certifications

obtaining and supplying Independent Certifications, including Independent Expert review

reports and recommendations

supplying any other information requested by the Registrar.

Purpose

The purpose of this requirement is to ensure continuing confidence in you and your ELNO System,

including your ELN.

Scope


Compliance

You are to provide the Registrar with documentation and certifications as set out in Schedule 3 of



You compliance with this requirement is to be demonstrated by providing documentation and/or

certifications to the Registrar when applying for approval, prior to commencing operations and

monthly and annually thereafter while you remain approved to operate.


You are to provide the documentation and certifications set out in Category One of Schedule 3 of



You are to provide the documentation and certifications set out in Category Two of Schedule 3 of

the Operating Requirements at least eight (8) weeks prior to your nominated date for commencing

operations.



You are to publish and provide the documentation set out in Category Four of Schedule 3 of the

Operating Requirements within ten (10) business days of the end of each month while you remain



You are to provide the documentation and certifications set out in Category Three of Schedule 3 of

the Operating Requirements as part of your Annual Report to the Registrar within three (3) months

of the end of each financial year while you remain approved to operate.

You are also to provide documentation and certifications substantiating your compliance within ten

(10) business days of a request from the Registrar while you remain approved to operate.


15.3 Inability to give a No-Change Certification

Requirement

You have an obligation to re-establish your compliance with the Operating Requirements if at any

time you are unable to give a No-Change Certification.

Purpose

The purpose of this requirement is to ensure that any changes in your compliance arrangements

are brought to the Registrar’s notice and your compliance with the relevant requirement is promptly

re-established

Scope


Compliance

You are to re-establish your compliance whenever you are unable to provide a No-Change

Certification as set out in Schedule 3 of the Operating Requirements.


Your compliance with this requirement is to be demonstrated when necessary and within ten (10)



15.4 When to Demonstrate Compliance

Requirement

You have an obligation to demonstrate your compliance with particular requirements in the

Operating Requirements at specified times.

Purpose

The purpose of this requirement is to ensure continuing confidence in you and your ELNO System,

including your ELN.

Scope


Compliance

You are to provide the Registrar with documents and certifications at the times set out in Schedule

3 of the Operating Requirements.


Your compliance with this requirement is to be demonstrated by the timely and complete provision

of documentation and certifications at the times set out in Schedule 3 of the Operating

Requirements.

You are also to provide documentation and certifications substantiating your compliance within ten

(10) business days of a request from the Registrar while you remain approved to operate.


15.5 Demonstrate Compliance at any Time

Requirement

You have an obligation to demonstrate your compliance with the Operating Requirements when

requested by the Registrar.

Purpose


your ELN.

Scope


Compliance

You are to provide the Registrar with documented substantiation of your compliance within ten (10)

business days of a request.

It is expected that your documented substantiation of a compliance matter requested by the

Registrar will consist of a description of how you achieve compliance together with copies of all

relevant supporting evidence.

It is not sufficient in complying with this requirement to simply assert your compliance. Your

compliance must be demonstrated with relevant documentation obtained or made by you and

securely retained for the purposes of substantiating your compliance.


Your compliance with this requirement is to be demonstrated by your timely, relevant and complete

response to requests from the Registrar.


15.6 Provision of Further Information

Requirement

You have an obligation to satisfy any written request from the Registrar for further information,

including documentation and certifications, to demonstrate your compliance with the Operating

Requirements within a reasonable time determined by the Registrar.

Purpose


your ELN.

Scope


Compliance

You are to provide the further information requested by the Registrar within the time determined by

the Registrar.


Your compliance with this requirement is to be demonstrated by your timely and complete

response to requests from the Registrar while you remain approved to operate.


15.7 Notice of Non-Compliance and Remedy

Requirement

You have an obligation to advise the Registrar in writing of your failure at any time to comply with

the Operating Requirements, or of your expected non-compliance in the future, and to either

remedy any non-compliance within ten (10) business days or to take such action as necessary to

avoid non-compliance in the future.

Purpose

The purpose of this requirement is to ensure the Registrar is made aware of all instances where

there may be an unexpected risk to the proper completion of a conveyancing transaction and to the

integrity of the Titles register.

Scope


Compliance

You are to report actual and anticipated non-compliance with the Operating requirements and

include appropriate remedial or avoidance action plans.


You are to report non-compliances with the Operating Requirements immediately they occur or you

first become aware of their having occurred or are expected to occur, and annually as a part of

your Annual Report to the Registrar.

Immediate Documentation

It is expected that when reporting an actual or anticipated compliance breach to the Registrar, you

will provide details in writing of the:

nature of the breach and when and where it occurred or is expected to occur

significance of the breach in terms of transactions, value, Subscribers and relying parties

affected

actions taken or intended to be taken to remedy or avoid the breach or to mitigate its impact

actions taken to prevent the breach from recurring in the future.


You are to provide, in your Annual Report to the Registrar, consolidated categorised details of:

your compliance breaches for the period


your compliance breaches that would have occurred had you not taken preventive action and

the nature of each preventive action taken

the remediations you have put in place for each actual and anticipated compliance breach

the outcomes you have achieved or expect to achieve from each remediation.

It is expected that you will categorise each of your actual and anticipated compliance breaches and

their respective remediations by the nature and severity of the breach in terms of implications for

relying parties.

In the event that no compliance failures have occurred or are anticipated during the reporting

period, a nil report is to be given for the period.


15.8 Remediation of Non Compliance

Requirement

You have obligations to provide the Registrar with a remedial action plan for any obligation that you

fail to demonstrate compliance with as and when required on two consecutive occasions and to

implement the remedial action plan without delay.

Purpose

The purpose of this requirement is to ensure any repeated failure to demonstrate compliance is

remedied without delay.

Scope


Compliance

You are to provide the Registrar with a remedial action plan and implement that plan without delay

on each of the second consecutive occasions when you are unable to demonstrate your

compliance as required with a particular obligation in the Operating Requirements.


You are to demonstrate your compliance with this requirement by providing the Registrar with your

remedial action plan and advice of its being or having been implemented whenever you advise the

Registrar that you are unable for the second consecutive time to demonstrate your compliance as

required with a particular obligation in the Operating Requirements.

You are also to provide a remedial action plan and implementation advice within ten (10) business

days of a request from the Registrar while you remain approved to operate.


15.9 Remediation of Serious Non Compliance

Requirement

You have an obligation to immediately prepare and provide the Registrar with a remedial action

plan, and to promptly implement that action plan, whenever the Registrar notifies you that your

non-compliance is of a serious nature.

Purpose

The purpose of this requirement is to ensure any serious non-compliance with the Operating

Requirements is remedied promptly.

Scope


Compliance

You are to prepare a remedial action plan, provide the plan to the Registrar and promptly

implement it.


Your compliance with this requirement is to be demonstrated by your preparing, providing and

implementing a remedial action plan immediately upon receipt of a serious non-compliance

notification from the Registrar.


15.10 ELNO may provide certified copies of original documents

Requirement

You have an obligation to have copies of Specified Documents provided to the Registrar certified

as true copies by one of your principals, directors or officers.

Purpose

The purpose of this requirement is to ensure the Registrar can rely on copies of original documents

provided to demonstrate your compliance with the Operating Requirements.

Scope


Compliance

In providing a copy of an original document to the Registrar you are to have it certified as a true

copy of the original by a principal, director of officer.


Your compliance with this requirement is to be demonstrated by including on the copy the full

name and status of the person certifying the copy and the date of certification.


16 Independent Certification

16.1 Approval of Independent Expert

Requirement

You have an obligation to ensure that each Independent Expert you engage to provide an

Independent Certification:

has the prior written approval of the Registrar

is not related to or associated in any way with you or any of your directors, officers,

employees, contractors or agents

is qualified, competent and insured to the satisfaction of the Registrar.

Purpose

The purpose of this requirement is to ensure that the Registrar can have confidence in each

Independent Certification and Independent Expert’s recommendations.

Scope


Compliance

You are to provide details of each proposed Independent Expert’s affiliations, qualifications,

insurance and experience to the Registrar.


Your compliance with this requirement is to be demonstrated by providing the details of each

proposed Independent Expert to the Registrar at least three (3) months prior to the Independent

Certification being required.


16.2 Assistance

Requirement

You have an obligation to provide each Independent Expert you engage to prepare an

Independent Certification with reasonable assistance to complete the work. Reasonable

assistance includes directing third parties with whom you have contractual relationships to make

relevant information available to the Independent Expert.

Purpose

The purpose of this requirement is to ensure that each Independent Certification and each

Independent Expert’s recommendations are thoroughly informed and can be relied upon by the

Registrar.

Scope


Compliance

You are to provide all requested assistance to the Independent Experts you engage, including

directing third parties with whom you have contractual relationships to make all relevant

information available to the Independent Expert.


Your compliance with this requirement is to be demonstrated by including specific conditions in

each contract you enter into with your suppliers and third parties.


16.3 Essential and Desirable Recommendations

Requirement

You have an obligation to ensure that, when an Independent Expert engaged by you to provide an

Independent Certification makes recommendations concerning your compliance with the Operating

Requirements, those recommendations are expressed as either Essential or Desirable

Recommendations.

Purpose

The purpose of this requirement is to ensure clear identification of those recommendations that

must be implemented to secure your compliance with the Operating Requirements.

Scope


Compliance

You are to include in each statement of work you issue to an Independent Expert that any

recommendations made by the Independent Expert are to be categorised as either Essential or

Desirable in securing your compliance.


Your compliance with this requirement is to be demonstrated when you provide details of each

proposed Independent Expert engagement to the Registrar.


16.4 Inclusion of Essential Recommendations in Independent Expert’s Certification

Requirement

You have an obligation to ensure that any Essential Recommendations made by an Independent

Expert providing you with an Independent Certification are disclosed to the Registrar with the

certification.

Purpose

The purpose of this requirement is to ensure the Registrar is made aware of all matters identified

by an Independent Expert as essential to securing your compliance with the Operating

Requirements.

Scope


Compliance

You are to provide any Essential Recommendations made to you by an Independent Expert when

you provide the Expert’s Independent Certification to the Registrar.


Your compliance with this requirement is to be demonstrated when providing Independent

Certifications to the Registrar in accordance with Schedule 3 of the Operating Requirements.


17 Compliance Examination

Requirement

You have an obligation to comply with each Compliance Examination conducted by the Registrar.

Purpose

The purpose of this requirement is to ensure Compliance Examinations can be carried out

efficiently and where and when required by the Registrar.

Scope


Compliance

You are to comply with Compliance Examination requirements set out in Section 33 of the ECNL

and in the Compliance Examination Procedure in Schedule 5 of the Operating Requirements.


Your compliance with this requirement is to be demonstrated when the Registrar undertakes a

Compliance Examination.


18 Reports

18.1 Monthly Report

Requirement

You have an obligation to publish a Monthly Report of your performance as an ELNO.

Purpose

The purpose of this requirement is to ensure confidence in you as an ELNO.

Scope


Compliance

You are to publish and provide a Monthly Report to the Registrar.

It is expected that your Monthly Report will:

be clear and concise

be published by a means that makes it readily and widely available without restriction

be presented in a manner that enables ready determination of your compliance and any

trends in your compliance

remain publicly available for at least twelve (12) months while you remain approved as an

ELNO.

It is expected that your reporting on complaints received will be part of the compliance program

you put in place to satisfy your obligation to operate your ELN in a proper, competent, sustainable

and efficient manner. In this regard, AS10002:2014 provides guidance on the design and

implementation of contemporary customer satisfaction and complaints handling processes.

Specific Inclusions

Your Monthly Report is to include details of:

the performance of your ELNO System against the Performance Levels set out in Schedule 2

of the Operating Requirements

the complaints you have received and dealt with about your services and performance as set

out in Category 4 of Schedule 3 of the Operating Requirements.


Your reporting on the performance of your ELNO System is to include at least your performance

against the Performance Levels set out in Schedule 2 of the Operating Requirements for:

Service Availability

Service Reliability

System Responsiveness

System Resilience

Incident Resolution

Problem Identification.

Your reporting on complaints in accordance with Category Four of Schedule 3 of the Operating

Requirements is to categorise the complaints you have received into at least:

general complaints about your services and performance

complaints about your refusal to register Subscriber applicants

complaints about the training resources and information you make available to your

Subscribers.

Within each complaint category, you are to report on at least:

the number of complaints received during the preceding month

the number found to be justified

the number satisfactorily resolved with the complainant

the number remaining unresolved at the end of the preceding month

the number and age of all complaints remaining unresolved at the end of the preceding

month.


You are to demonstrate your compliance with this requirement by publishing and providing a report

to the Registrar monthly while you remain approved to operate.


You are to publish your Monthly Report and provide it to the Registrar within ten (10) business

days of the end of each calendar month


18.2 Annual Report to the Registrar

Requirement

You have an obligation to provide the Registrar with an Annual Report each year.

Purpose

The purpose of this requirement is to provide a regular demonstration to the Registrar of your

continuing compliance with the Operating Requirements.

Scope


Compliance

You are to provide an Annual Report to the Registrar.

It is expected that your Annual Report will be comprehensive setting out at least:

a description of your activities for the period

the extent of any non-compliance with the Operating Requirements

the specific instances, if any, of your non-compliance during the period and the reasons for

each instance of non-compliance

the actions you have taken or intend to take to remedy each instance of non-compliance

the actions, if any, you have taken or intend to take to mitigate the risk of your non-

compliance in the future.

Specific Inclusions

Your Annual Report is to include at least:

all Specified Documents, Self-Certifications, No-Change Certifications and Independent

Certifications (including each Independent Expert’s report and any Essential

Recommendations) you are required to provide annually to the Registrar while approved to

operate

the actions you have taken or intend to take to implement each of any Essential

Recommendations accompanying each Independent Certification

an analysis of each instance of your non-compliance with the Operating Requirements during

the period.


Your Annual Report is to be provided within three (3) months of the end of each financial year.


Your first Annual Report is to be for the period from your commencing operations to the end of the

financial year in which you commenced operations. If that period is three (3) months or less, your

first Annual Report can be provided after your first full financial year of operations.


19 Data and Information Obligations

19.1 Retention

Requirement

You have an obligation to indefinitely retain, retrieve and provide to the Registrar when requested

information and documents received and created by your ELN.

Purpose

The purpose of this requirement is to ensure all relevant information is available to any

investigation or Compliance Examination by the Registrar.

Scope


Compliance

Your compliance with this requirement is to be part of your ISMS (refer Section 7).

Specific Inclusions

The arrangements included in your ISMS are to cover:

all workspace data created or received in connection with transactions

all electronic workspace documents, whether digitally signed or not and whether presented

or not to the Registrar for lodgment

all alerts, notifications and information received and sent in connection with transactions

each document and record received or created in connection with the registration of each of

your Subscribers and their use of your ELN.



documentation, together with a certification of its being Fit for Purpose, to the Registrar prior to

commencing operations and at any time that it is materially changed thereafter while you are


You are also to provide the Registrar with certifications of your ISMS being unchanged and Fit for

Purpose annually while you remain approved to operate.





an Independent Certification that your ISMS documentation is Fit for Purpose.






In the event that you are unable to provide a No-Change Certification, you are to submit revised

documentation of your ISMS to the Registrar, together with an Independent Certification of the

revised documentation, management and operation of your ISMS being Fit for Purpose and any

Essential Recommendations of the Independent Expert.


19.2 Generation and Retention of Transaction Audit Records

Requirement

You have an obligation to generate and indefinitely retain transaction audit records and provide

them to the Registrar when requested.

Purpose

The purpose of this requirement is to ensure all relevant information is available to any

investigation or Compliance Examination by the Registrar.

Scope


Compliance

Your compliance with this requirement is to be part of your ISMS (refer Section 7).

Specific Inclusions

The arrangements included in your ISMS are to cover the generation and indefinite retention of

records of the use of your ELNO System including:

changes made in workspaces and who made each change

administrative actions taken in relation to use of your ELNO System and by whom

other actions of you or your Subscribers and their Users in a workspace and by whom

changes in the status of a workspace, or instrument or other document in a workspace, and

what action or event caused the change

events relating to the security and integrity of your ELNO System and what action by whom

gave rise to the event.



documentation, together with a certification of its being Fit for Purpose, to the Registrar prior to

commencing operations and at any time that it is materially changed thereafter while you are


You are also to provide the Registrar with certifications of your ISMS being unchanged and Fit for

Purpose annually while you remain approved to operate.





an Independent Certification that your ISMS documentation is Fit for Purpose.






In the event that you are unable to provide a No-Change Certification, you are to submit revised

documentation of your ISMS to the Registrar, together with an Independent Certification of the

revised documentation, management and operation of your ISMS being Fit for Purpose and any

Essential Recommendations of the Independent Expert.


19.3 Use of Land Information

Requirement

You have obligations restricting your use, storage, alteration, reproduction, disclosure, product

development and resale of Land Information without approval from the Registrar.

Purpose

The purpose of this requirement is to ensure confidence in the supply of Land Information to your

ELN by the Registrar and your Subscribers.

Scope


Compliance

You are to comply with this requirement in regard to all information you receive that is used in the

preparation of documents and data to be lodged with the Registrar.

Specific Inclusions

You are to comply with this requirement in regards to:

storage of Land Information for other than facilitating the preparation of documents to be

lodged with the Registrar

modification or alteration of Land Information

anything that allows another person to modify or alter Land Information

use, reproduction or disclosure of Land Information other than as required or requested by a

Subscriber participating in the relevant transaction

anything that allows another person to use, reproduce or disclose Land Information other

than as required or requested by a Subscriber participating in the relevant transaction

creation of products which include or are the same as or substantially similar to Land

Information

reverse assembly, reverse compilation, reverse engineering or recreation or rework of Land

Information

re-use of Land Information in any manner not approved by the Registrar.


You are to provide the Registrar annually while you remain approved to operate with a certification

of your compliance with this requirement.



You are to provide a Self-Certification in each Annual Report to the Registrar of your having

complied with this requirement during the period.

To support your certification, it is expected that you will have determined and documented for the

period:

frequency and means of receiving Land Information

total instances of receiving Land Information

detected instances of unauthorised modification or alteration of Land Information

detected instances of unauthorised use of Land Information

detected instances of unauthorised reproduction or disclosure of Land Information

sustained complaints received about unauthorised treatment of Land Information

reviews, including risk assessments, undertaken of your compliance program

changes made, if any, to your compliance program to address instances of non-compliance

during the period and new compliance risks identified.

It is expected that you will be able to provide this documentation within ten (10) days of a request

from the Registrar while you remain approved to operate.


19.4 Provide Information to Subscribers

Requirement

You have an obligation to provide alerts and notifications to your Subscribers supplied to you by

the Registrar.

Purpose

The purpose of this requirement is to ensure that the Registrar has a means of getting relevant

information to your Subscribers.

Scope


Compliance

You are to provide any alerts and notifications for Subscribers received from the Registrar to

Subscribers.

It is expected that:

your ELNO System will include a convenient and reliable means of providing alerts and

notifications to your Subscribers, including alerts and notifications supplied to you by the

Registrar

you will have arrangements in place for:

receiving, recording and verifying alerts and notifications supplied to you by the Registrar

promptly communicating each alert and notification to the relevant Subscribers

receiving and recording confirmation of the delivery of each alert and notification.

Specific Inclusions

Your arrangements are to provide for alerts and notifications that relate to:

amendments to the ECNL, the Operating Requirements or the Participation Rules

an emergency situation or the security, integrity or stability of the Titles Register

a direction to you relating to any or all Subscribers

matters generally about your operations to be communicated to Subscribers

matters generally to be communicated to Subscribers.





19.5 Intellectual Property Rights

Requirement


not do anything that might invalidate or be inconsistent with the intellectual property rights of

the Registrar, a Land Registry or a State or Territory

promptly notify the Registrar if you know or suspect that such rights have been infringed

take what action you can to prevent the infringement from re-occurring

take all steps the Registrar reasonably requires of you to maintain the validity and

enforceability of such rights.

Purpose

The purpose of this requirement is to protect the Registrar’s, the Land Registry’s and the State or

Territory’s intellectual property rights.

Scope

This requirement applies to you in the operation of your ELN only.

Compliance

It is expected that this obligation will be fully reflected in the design and implementation of the

compliance programs you establish to satisfy your general obligation to comply with the Operating

Requirements.



request from the Registrar while you remain approved to operate while you remain approved to

operate.


20 Registrar’s Powers

20.1 Suspension or Revocation of ELNO’s Approval

This clause of the Operating Requirements does not place any obligation on you.


21 Business and Services Transition

21.1 Transition Plan

Requirement

You have an obligation to establish, operate, monitor, review, maintain and keep current a

documented, detailed and comprehensive Transition Plan (TP) for invoking in the event of your

ceasing to provide and operate your ELN or any of its services.

Purpose

The purpose of this requirement is to ensure that in the event of your needing to cease providing

and operating your ELN or any of its services, you can disengage from the business in an orderly

manner with the least possible disruption to affected parties including the Registrar.

Scope


Compliance

You are to comply with this requirement by having a Transition Plan.

It is expected that your Transition Plan will be a comprehensive, robust and documented plan of

action that has regard for all foreseeable circumstances in which you may not be able to continue

providing one or more of your ELN’s services.

Specific Inclusions

It is expected that your Transition Plan will include at least the following:

notifications to your users and relying parties, including the Registrar:

(a) that your Transition Plan has been invoked

(b) why it has been invoked,

(c) what procedures you will be following

(d) what procedures they will need to follow

orderly winding down of your affected systems, facilities and services

controlled completion of all affected transactions that have been started but not yet

completed

continued support for your Subscribers in finalising their incomplete transactions

transfer or licensing of any intellectual property rights necessary for the continued operation

of your systems, facilities and services by another ELNO or the Registrar


migration of all Subscriber and transaction data and service agreements

orderly shutdown of discontinued systems, facilities and services unable to be migrated

safe custody of all retained records of Subscribers and completed transactions

time frames in which all matters are expected to be finalised.


You are to demonstrate your compliance with this requirement by providing your Transition Plan

documentation to the Registrar prior to commencing operations and annually thereafter while you

remain approved to operate you are to provide the Registrar with a certification of your Transition

Plan being unchanged and suitable for the intended use.


Prior to commencing operations, you are to provide your Transition Plan documentation to the

Registrar.



No-Change Certification that your Transition Plan remains unchanged and suitable for the intended

use.

To support this certification, it is expected that you will have reviewed your Transition Plan for its:

comprehensiveness and accuracy

use of contemporary facilities and services

continued relevance to the full extent of your operations and environment.

It is expected that you will be able to provide your documentation of this review within ten (10) days


In the event that you are unable to provide a No-Change Certification, you are to provide revised

documentation of your Transition Plan to the Registrar.


21.2 Minimum Requirements of a Transition Plan

Requirement

You have an obligation to include in your Transition Plan:

notice to all of your Subscribers and the Registrar of the timing, extent and reason for your

disengagement

process for orderly winding down of your affected systems, services and facilities

manner in which any incomplete transactions are to be finalised

transfer of all retained records to the Registrar or as directed by the Registrar

transfer of all licenses and intellectual property to a third party or the Registrar.

Purpose

The purpose of this requirement is to minimise the disruption to affected parties of your having to

discontinue any or all of your ELN’s services.

Scope


Compliance

You are to comply with this requirement by providing for it in your Transition Plan.



documentation to the Registrar prior to commencing operations and annually thereafter while you

remain approved to operate you are to provide the Registrar with a certification of your Transition




Registrar.




use.





continued relevance to the full extent of your operations and environment.

It is expected that you will provide your documentation of this review within ten (10) days of a


In the event that you are unable to provide a certification, you are to provide revised documentation

of your Transition Plan to the Registrar.


21.4 Implementation of Transition Plan

Requirement

You have an obligation to invoke your Transition Plan either:

twelve (12) months prior to your intending to cease to provide your ELN or any services

material to the operation of your ELN, or

immediately if your Approval to operate as an ELNO is revoked, or

upon receipt of notification from the Registrar that your Approval to operate as an ELNO is

not to be renewed.

Purpose

The purpose of this requirement is to ensure that you can always disengage from the whole or part

of the business in an orderly manner with the least possible disruption to affected parties including

the Registrar.

Scope


Compliance

You are to comply with this requirement by providing for it in your Transition Plan.



documentation to the Registrar prior to commencing operations and, annually thereafter while you

remain approved to operate, you are to provide the Registrar with a certification of your Transition




Registrar.




use.





continuing relevance to the full extent of your operations and environment.

It is expected that you will be able to provide your documentation of this review within ten (10) days


In the event that you are unable to provide a No-Change Certification in any Annual Report to the

Registrar, you are to provide the Registrar with revised documentation of your Transition Plan.


22 Amendment of Operating Requirements

Requirement

You have an obligation to comply with any amendment made to the Operating Requirements.

Purpose

The purpose of this requirement is to ensure the Operating Requirements can be kept relevant and

up to date.

Scope


Compliance

You are to comply with any amendment made to the Operating Requirements in accordance with

the procedure set out at Schedule 6 of the Operating Requirements.

It is expected that your compliance with your obligation to ensure that your ELN is soundly

designed and provisioned, including being reliable, scalable and flexible, will enable your

compliance with this requirement (refer Section 10.1).


Your compliance with this requirement is to be demonstrated when an amendment is made to the


It is expected you will:

participate in good faith consultation with the Registrar when necessary about proposed

amendments to the Operating Requirements

assess the implications for you and for your Subscribers of any proposed amendment

provide the Registrar with relevant advice on any proposed amendment

use best endeavours to achieve compliance with any amendment as soon as practicable.


23 Additional Operating Requirements

Requirement

You have an obligation to comply with any additional Operating Requirements.

Purpose

The purpose of this requirement is to ensure the Operating Requirements can be added to by a

jurisdiction if circumstances reveal that the existing requirements are insufficient in that jurisdiction.

Scope


Compliance

You are to comply with any additional Operating Requirements.

It is expected that your compliance with your obligation to ensure that your ELN is soundly

designed and provisioned, including being reliable, scalable and flexible, will enable your

compliance with this requirement (refer Section 10.1).


Your compliance with this requirement is to be demonstrated when an addition is made to the


It is expected you will:

participate in good faith consultation with the Registrar when necessary about proposed

additions to the Operating Requirements

assess the implications for you and for your Subscribers of any proposed additional

requirement

provide the Registrar with relevant advice on any proposed additional requirement

use best endeavours to achieve compliance with any additional requirement as soon as

practicable.

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